Removal and relocation

You cannot claim a deduction for the cost involved in taking up a transfer in an existing employment or taking up new employment with a different employer.


If the employee is changing work locations but remains in the employ of the same employer 



  • It is considered that an employee who is travelling to commence employment duties at a new work location is not travelling on duty.
  • The taxpayer is not travelling ON his or her work Nor is the taxpayer travelling between two places of employment.
  • but is travelling TO his or her work.


  • The employment duties do not commence until the employee reports for work at the new location.


  • If an employer pays the travelling costs of getting the employee, his or her spouse and family to the new work location such costs are allowable income tax deductions to the employer

http://law.ato.gov.au/atolaw/view.htm?locid=%27ITR/IT2566/NAT/ATO%27
http://law.ato.gov.au/atolaw/view.htm?locid=%27ITR/IT2481/NAT/ATO%27&PiT=99991231235958