Income tax and FBT - deducting costs of travel by motor vehicle between home and work

These draft items are intended to update and replace IS3448: Travel by motor vehicle between home and work – deductibility of expenditure and FBT implications.  For ease of readability, the previous statement has been divided into two draft interpretation statements.

The first draft interpretation statement considers who can claim income tax deductions for expenditure on travel by motor vehicle between home and work under the specific deductibility rules for motor vehicle expenditure, and in what circumstances. 

The second draft interpretation statement considers when employer-provided transport between home and work by motor vehicle is a fringe benefit subject to FBT.  Although an FBT review is underway by IR Policy, IR continues to receive questions from customers about the current position so is continuing with this update, even though some aspects of the FBT rules may change.

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