Income tax: where a taxpayer carries on a business of primary production on a property remote from their usual place of residence and employment/business, is a deduction automatically allowable for travel between: (1) the usual place of work and the property; or (2) the usual place of residence and the property?

Taxation Determination TD 96/43 considers the deductibility of travel expenses under subsection 51(1), or sections 53 or 54 of the Income Tax Assessment Act 1936 , in circumstances where a taxpayer carries on a business of primary production on a property separate from their residence.

Following the court decision in Federal Commissioner of Taxation v. Payne (2001) 202 CLR 93; 2001 ATC 4027; (2001) 46 ATR 228 and the subsequent enactment of section 25-100 of the Income Tax Assessment Act 1997 (ITAA 1997), TD 96/43 no longer reflects the current state of the law.

The deductibility of travel expenses is now addressed by section 25-100 and section 8-1 of the ITAA 1997.