Blog & Resources

Can home to work travel be claimed as a tax deduction?

Normally home to work travel for an employee is not tax deductible as it is deemed private travel. 

However, it is possible for an employer to make the employee’s home to work travel tax deductible for the employer if the following two requirements are met:

  • The employer provides the employee with a work motor vehicle that is a taxi, panel van or utility. The utility can be two or four door, and the carrying capacity is irrelevant.

  • The employee only uses the motor vehicle for travelling to and from work, and for work related travel. Any private use of the motor vehicle by the employee is minor, infrequent and irregular.

If the above two requirements are satisfied then:

  1. The employer can claim a 100% tax deduction for the motor vehicle expenses incurred.
  2. There will be no Fringe Benefits liability associated with the motor vehicle.
  3. The motor vehicle benefit is tax free to the employee as well. 

If you would like to discuss further please contact us:
McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
Phone +61 3 9428 1062

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