Expenses incurred in travelling to and from work - transporting clothes

Is expenditure incurred by the taxpayer in transporting a change of clothes to and from work an allowable deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?

No, the expenditure is not an allowable deduction under section 8-1 of ITAA 1997.

The taxpayer has two separate employers on each working day. On completion of the duties with the first employer (Employer A), the taxpayer commences duty with the second employer (Employer B).

Employer A requires the taxpayer to wear a distinctive uniform which is not suitable for use with Employer B, necessitating a change of clothes prior to commencing duties with the second employer.

The taxpayer uses a motor vehicle to travel between home and work.

Section 8-1 of the ITAA 1997 generally allows a deduction for any loss or outgoing to the extent that it is incurred in gaining or producing assessable income.

It is settled law that expenditure incurred in travelling to and from the normal workplace is not deductible as it is not incurred in, or in the course of, gaining or producing the assessable income. ( Lunney & Hayley v. Federal Commissioner of Taxation (1958) 100 CLR 478).

A deduction is allowable if the transport costs can be attributed to the transportation of bulky equipment rather than to private travel between home and work ( FC of T v. Vogt 75 ATC 4073; 5 ATR 274). If however the equipment is transported to and from work merely as a matter of convenience, it is considered that the transport costs are private and no deduction is allowable (Taxation Ruling TR 95/19, paragraph 138).

A deduction is not allowable to the taxpayer because the items of clothing are not considered bulky. Even if they were bulky a deduction would not be allowable because they were transported as a matter of the taxpayer's personal convenience.