Question:
Tribunal refuses train guard travel claims
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
The Administrative Appeals Tribunal (the Tribunal) refused an appeal by a NSW train guard for a deduction of $3,700 against his 2010 tax for car expenses on the cents per kilometre basis. The guard made the claim because he carried mandatory work items to and from work including:
- Full folders of railway instructions;
- A watch showing the correct time;
- Multi-coloured torch;
- Notebook;
- Working timetable;
- Diagram book;
- A red and a green flag;
- Identification card;
- Hand-held radio;
- Key kit;
- Train status book;
- Departmental issue mobile phone;
- A pager;
- A whistle;
- A safety vest; and
- A pad of “delay slips”.
The claim was refused because a locker that could contain all of the items was provided by NSW RailCorp and it was a “matter of personal choice” to transport the essential equipment each day.
The Tribunal said, “…personal choice of that kind is not enough to displace the principle established in Lunney’s case that transport between work and home is not deductible”.
WTB 14/1062, AAT Case [2014] AATA 361, Re Ford and FCT, Lunney v FCT (1958) 100 CLR478
Andrew and Tony Lovett
10 August 2014
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