This is not an unusual situation that is becoming more prevalent (post lockdown), with a hybrid model acceptable to employers whereby people may work from home, travelling to work on specific days when needed in the office. This ATO example covers this situation.

Example: living a long way from work – travel expenses aren’t deductible

Ainsley lives in Brisbane with his family. He accepts a job on a long-term project that is being carried out in Sydney. His employment contract indicates that his place of work is the office located on the project site in Sydney.

As Ainsley lives in Brisbane and does not need to be physically on-site all the time, he has an informal agreement with his employer to work from home whenever he is not required on-site. When Ainsley must be on-site, he is generally there for no longer than 2 weeks. As Ainsley’s regular workplace is in Sydney, his employer does not cover the cost of his flights to Sydney or his accommodation, meal and incidental expenses when Ainsley stays near the site.

Ainsley can’t claim a deduction for the accommodation, meal and incidental expenses he incurs when he travels and stays in Sydney to work at the project site. The expenses are private expenses, and Ainsley incurs them as a consequence of his personal circumstances; that is, he decides to live in Brisbane and work in Sydney.

Ainsley can’t claim the cost of his flights between Brisbane and Sydney for the same reasons.