Question

Alex Kingsford is a mechanical engineer working for ABC Engineering in Melbourne. Alex owns a property in Dandenong, Victorian where he and his family are residing. He also runs a homebased food catering business, preparing food for local residents and school canteens. Catering business is well-structured. Alex works 15 days a month and earns a substantial income from the catering services business. He is travelling from ABC Engineering workshop to his homebased business by car or sometimes Uber. When he lodged his tax return in July 2019, he has requested a deduction for a substantial amount of travelling expenses between the ABC Engineering workshop and home-based food business. Alex is now seeking your advice. With reference to relevant legislation and case law discuss whether Alex’s travelling expenses between the ABC Engineering workshop and his homebased catering business is an allowable deduction.

Answer 1

Here Alex's home is a place of Business and ABC Engineering is the place of employment.

Alex's travel between ABC Engineering and Home based food business is the travel from place of employment to place of business , these are not two places of employment or employment with shifting location or employment with uncertainty of location , or home based employmnet where Alex need to go out for attending work and come back to continue other work related to employment. Neither there is any clarity if Alex needs to carry heavy tools to place of employment as part of his duty of employment

The travel between home and ABC Engineering is neither part of his duty as a Business Owner nor a part of ohe employment with ABC Engineering.

Considering all these aspects , we can say that Alex cannot claim the travel expenses between ABC Engineering and Home as deductible expense.