Work-related travel expenses is an umbrella term used to identify any expenditure that incurs due to transport, travel, purchases or accommodation because of your job requirements. For example, if you have to travel as part of your job, any expenditure could potentially be considered your work-related travel expenses.
What Are Work-Related Travel Expenses?
Your work-related travel expenses examples could include:
● Using your motorcycles or vehicles with a carrying capacity of one tone or more, or nine or more passengers such as utility trucks.
● Accommodation in another town/city/country due to work
● Food / Meals if staying overnight
● Flights or other means of transport used for work
● An extra fee paid for parking, short term car hire, laundry, etc.
Since you can potentially claim these expenses as tax deductions, keeping records of all the work-related expenses incurred is essential.
What Can You Not Claim As Work-Related Travel Expenses?
You cannot claim the following:
● Transportation from work to home and vice versa
● Any personal item bought during your work-related travel such as tickets to a concert or a dress
Can I Claim It If I Use Hired Car or Public Transport While Travelling For Work?
You can claim travel tax deductions if you:
● Use the vehicle to travel from one work site to another
● Use the car to travel to meetings, events or conferences in a different venue
● Drive to another workplace from home
● Drive between various work locations for the same employer
You CANNOT claim travel tax deductions if you:
● Use transportation to go to work every day
● Travel from another location in which you undertake private activities
● Work from home for one employer and travel to the worksite for another employer
Can I Claim Parking?
You can claim parking in cases where your trip was also valid for a deduction. For example, you can claim the parking fee paid when travelling from one work location to another.
You CANNOT claim parking if you’re driving to your workplace from home every day and paying for parking.
Should I Record My Travel Expenses And What Are The Requirements?
Here are some summarised tables with record-keeping requirements:
Travel Allowance Is NOT Received
| Type of Travel | Record Keeping | < 6 Nights In A Row | ≥ 6 Nights In A Row |
| Domestic Travel | Written Evidence Travel Diary |
Yes No |
Yes Yes |
| International Travel | Written Evidence Travel Diary |
Yes No |
Yes Yes |
Travel Allowance Is Received – The Amount Claimed Does NOT Exceed The Reasonable Allowance Amount
| Type of Travel | Record Keeping | < 6 Nights In A Row | ≥ 6 Nights In A Row |
| Domestic Travel | Written Evidence Travel Diary |
No No |
No No |
| International Travel | Written Evidence Travel Diary |
Yes^ No |
Yes^ Yes* |
^ accommodation expenses (overseas) but not for food, drink and incidentals.
*No if members of an international air crew limit their claim to the amount of allowance received.
Travel Allowance Is Received – The Amount Claimed Exceeds The Reasonable Allowance Amount
| Type of Travel | Record Keeping | < 6 Nights In A Row | ≥ 6 Nights In A Row |
| Domestic Travel | Written Evidence Travel Diary |
Yes No |
Yes Yes |
| International Travel | Written Evidence Travel Diary |
Yes No |
Yes Yes* |
*No if members of an international air crew limit their claim to the amount of allowance received.
Employee truck drivers have different rules, especially for accommodation expenses, subject to the standard substantiation rules.
What If I Extend My Work Trip For A Few Extra Holidays?
Since you cannot claim any costs that aren’t connected to your work, you cannot claim the expenses incurred if you decide to stay a few extra days for leisure.
In addition, you also cannot claim any tax deductions for expenses that your employer already has compensated.
While you may have some information about work-related travel expenses and the relevant tax claims, a professional has in-depth knowledge about all the intricacies of the procedure. Therefore, consult with a professional for your tax returns.
Why You Need Professionals At IJ&EA
While you may know what travel expenses and tax claims you can make or can’t make, there are a ton of nitty-gritty scenarios that only a professional understands.
As professional accountants, we will give a thorough check to your claims before submitting them to the ATO. Not only will we answer all your queries, but we will also assist you in tricky aspects of tax returns that only qualified professionals understand.
Need help with your tax returns? Contact us at IJ&EA!
