Travel home to work | Tax Deductions
May 9, 2023
Travelling from Home to Work And from Work to Home
These are long established principals that have well been established through the Courts throughout the years.
It's not a grey issue but rather a concreted black and white outcome for any tax claim in this area.
Back to Tax Basics
The basis of any tax deduction is that their needs to be an expense that you very necessarily had to incur in order for you to do your job. So there must be a connection, in fact a little more than that, there must be a NEXUS, that is, a connection, a relationship a centre, a focus.
So without this NEXUS you don't have a Tax Deduction.
So now we look at your job and when you start earning that Income. Remembering that without the presence of Income there will be no nexus, and therefore no expenses and hence no tax deduction.
And the answer is .... you start earning your wage when you arrive at the front door of your workplace. It's at that point the the Tax Deduction clock starts. Not Before.
So how you choose to get to work is a private choice and any costs you incur to undertake that journey are private and accordingly not Tax Deductible. Why, because the travelling to work is a cost incurred BEFORE you started earning your wages. And because of that no NEXUS exists.
So that's another Negative.
Hope that makes things clearer for you. Fundamentally, this NEXUS concept underpins all claims for Tax Deductions.
So give yourself a rubber stamp, you're now a little more Tax Smarter.
Get even super smarter by downloading the smart Deduction Grabber app...
And if you're super dooper smart then get your tax return completed now... gotax.com.au.
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