Can Contractors claim travel on tax

[chris_king435]

Hey guys/gals,

Just wondering, is it possible for a contractor to claim tax on petrol costs and train tickets for getting to work. I know you can't as an employee, however i read it could be different for contractors.. Could someone please clarify

Cheers,

Chris

[MattR]

You may now be entering the world of Personal Services Income (PSI).

In real general terms, if as a contractor you are doing what an employee would be doing then, no deductibility.

Basic rule of thumb is you cannot use contracting simply as a means to try and claim additional deductions that you as an employee couldn't. But this is very simplistic.

Here's a link to PSI

http://www.ato.gov.au/businesses/con...tent/13054.htm

[CruzAccountant]

MattR is spot on with PSI.

If you were an employee you wouldn't be able to claim these expenses, so why would you be any different if you were to classify yourself as a "contractor"? Home to work is not deductible, however work to work is. If you were a true home based contractor, then your home is your work (or business premesis). The PSI rules are there to work out if you are a true contractor (or freelancer), or merely an employee with a contractor arragement.

[chris_king435]

Hey,

It's what i thought as well. Thank you for your responses

Chris