Tax Deduction for Travel Expenses?
Tax Return - Tax Deduction for Travel Expenses?

Tax Deduction for Travel Expenses?

Published on January 1, 2018
Sam Inayat - Bookkeeping, Tax return and BAS expert

Senior Accountant at Top Accountants

Can I claim tax deduction for my travel expenses? Yes but only if travel expenses you incur that are directly related to your work.

There are specific record-keeping requirements for travel expenses, depending on whether your travel allowance is shown on your payment summary, whether your travel was domestic or overseas, the length of your travel and your occupation.

In this article we will cover following travel expenses tax deduction questions:

  1. Example of eligibility to claim travel expenses as a tax deduction?
  2. When you cannot claim travel expenses as a tax deduction?
  3. How to prove your travel expenses?
  4. How to claim travel expenses if you have received allowances?

1. Example of eligibility to claim travel expenses as a tax deduction?

2. When you cannot claim travel expenses as a tax deduction?

3. How to prove your travel expenses?

The records you need to keep for travel expenses for fares, accommodation, food, drink and incidentals depend on the length of your trip and if it is domestic or international.

If you travel for six or more nights in a row, you may need to keep a travel diary in which you record the dates, places, times and duration of your activities and travel. The purpose of a travel diary is to allow accurate calculation of the employment-related and private elements of your trip. If the travel was partly private, you can claim only the work-related part.

4. How to claim travel expenses if you have received allowances?

If your travel allowance is shown on your payment summary and you want to make a claim against it, you must have written evidence for the whole of your claim, not just the excess over the reasonable amount.