Reany and Commissioner of Taxation (Taxation)

This matter concerned an appeal by Mr Reany against a decision of the Commissioner of Taxation regarding his 2012 income tax assessment. The primary dispute revolved around Mr Reany's claim for deductions for work-related travel expenses, specifically an allowance of $14,901 paid by his employer, TCC. Mr Reany contended that this allowance was for travel between home and various workplaces, and between those workplaces, necessitated by the requirement to transport bulky tools and equipment that could not be securely stored at work sites. The court was required to determine whether Mr Reany had discharged the onus of proving that his amended assessment was excessive and what the correct assessment should be, particularly in relation to the deductibility of these travel expenses.

The court considered whether the travel expenses were private in nature or deductible under the relevant provisions of the *Income Tax Assessment Act 1997*. Mr Reany argued that the travel was not private because he was required by his employer to transport tools and equipment that were too bulky or awkward to be transported by any other means and that his employer did not provide adequate secure storage for these items. He also relied on the fact that he received an allowance for this travel under an industrial award. The Commissioner, however, had partially allowed some deductions but not the significant travel expense claim.

The court found that Mr Reany bore the onus of proving his entitlement to the claimed deductions. While acknowledging that Mr Reany was required to provide his own tools, some of which were bulky, and that his employer's storage facilities might not have been entirely secure, the court ultimately determined that the travel expenses were private in nature. The reasoning focused on the fact that the travel was between home and a place of work, and despite the need to transport tools, the employer's provision of some storage, even if deemed insufficient by the applicant, and the general principle that travel from home to a regular place of work is private, led to the conclusion that the deduction was not allowable. The court affirmed the Commissioner's decision in part, meaning the significant travel expense claim was not allowed.