Starting your working day at home does not automatically make the trip to your regular workplace tax deductible.
The Full Federal Court confirmed this position in April 2026, overturning an earlier decision that had attracted attention from hybrid workers and tax professionals.
What happened in the Hall case?
An ABC employee performed most of his duties from a dedicated room in his apartment during COVID-19 restrictions. Some duties still required him to attend the ABC's Southbank studios.
He claimed car expenses for travelling between his home and the studios, arguing that he was travelling between two workplaces. An earlier Administrative Review Tribunal decision allowed the claim.
The Full Federal Court overturned that decision. It found that the employee's work at home had ended before he travelled and his studio duties did not begin until he arrived. The journey was travel to work, rather than travel undertaken while performing his work.
The Court also rejected the claim for a portion of his residential rent. Although the second bedroom was used for work, the rent retained its private or domestic character.
What does this mean for hybrid workers?
Working from home before travelling to the office does not usually change the nature of the trip.
| Usually not deductible | May be deductible |
|---|---|
| Home to your regular workplace | Direct travel between two separate workplaces |
| Travelling after answering emails at home | Regular workplace to a client or alternative work location |
| Home to the office after an online meeting | Travel between client locations during the working day |
| Travel during ordinary work hours when the trip is still a commute | Travel that forms part of performing your employment duties |
The location, purpose and timing of each trip need to be considered. Simply calling your home a workplace is not enough.
Can you still claim working-from-home expenses?
The Hall decision does not prevent employees from claiming eligible running expenses associated with working from home.
Running expenses
Eligible costs may include the work-related portion of electricity, phone, internet, stationery and equipment.
Occupancy expenses
Rent, mortgage interest, rates and home insurance are generally private for employees unless the area has the character of a place of business.
What records should you keep?
- The date and purpose of each work-related trip.
- Where the trip began and ended.
- Kilometres travelled.
- Whether you were reimbursed.
- How the travel related to your employment duties.
- Your working-from-home hours and expenses.
A logbook or receipt does not make private travel deductible. The underlying trip must still qualify.
Frequently asked questions
Can I claim travel from my home office to my employer's office?
Generally, no. Performing some duties at home does not usually turn the trip to your regular workplace into deductible work travel.
Can I claim travel between two client locations?
It may be deductible when the travel is required as part of performing your employment duties. Records should show the purpose and route of the trip.
Can I claim rent for a dedicated home office?
Employees generally cannot claim residential rent merely because a room is used for work. Different rules may apply where part of the home has the character of a place of business.
Check before you claim
Small differences in your work arrangements can change the tax treatment. Ask RJS to review your travel and working-from-home expenses.
Ask RJS about your deductions