These draft items are intended to update and replace IS3448: Travel by motor vehicle between home and work – deductibility of expenditure and FBT implications. For ease of readability, the previous statement has been divided into two draft interpretation statements.

The first draft interpretation statement considers who can claim income tax deductions for expenditure on travel by motor vehicle between home and work under the specific deductibility rules for motor vehicle expenditure, and in what circumstances.

The second draft interpretation statement considers when employer-provided transport between home and work by motor vehicle is a fringe benefit subject to FBT.

CA ANZ appreciates the inclusion of many examples and flowcharts as these additions will assist readers to understand the key concepts and principles relating to this subject. CA ANZ also supports the new content in the drafts regarding the Commissioner’s view on vehicles taken home for secure storage or for charging an EV at home.

CA ANZ suggests a few changes to further improve the documents.