Date posted: 28/02/2020

Submission on TR 2019 D7- deductibility of employees’ transport expenses

Submission lodged on TR 2019/D7 - 28 February 2010

Chartered Accountants ANZ has lodged a submission on the draft taxation ruling TR 2019/D7 Income tax: when are deductions allowed for employees’ transport expenses?

We welcome the more flexible approach in the draft ruling as it will help address some of the practical compliance concerns from employees that arose after the issue of the previous draft taxation ruling TR 2017/D6 Income tax and fringe benefits tax: when are deductions allowed for employees’ travel expenses?.

TR 2019/D7 partially overlaps with previous draft ruling TR 2017/D6. Where the views in TR 2019/D7 and TR 2017/D6 conflict, the views in TR 2019/D7 prevail. Given the ATO will also be issuing a draft ruling covering meals and accommodation in the near future, we have asked that the finalisation of TR 2019/D7 be fast tracked in a coordinated fashion, with the ATO website update plus a tax agent/taxpayer education support program ready to go.

CA ANZ has also recommended that TR 2019/D7 include commentary and an example dealing with the apportionment of travel expenses where an employee is required to travel from home to an alternative work location which includes an extended stay at the alternative work location for private purposes (i.e. work travel with a holiday at the end).

The submission also queries the ATO’s view of the deductibility of transport expenses for employees that work over-time on an adhoc basis.

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