Tax Deductions for Work Travel: What Expenses Can You Claim?

If your job requires travel—whether it’s a quick trip to meet a client or an interstate conference—you could be eligible for tax deductions on the expenses you incur. But tax rules can be confusing, and the ATO keeps a close eye on travel claims, so it’s important to know what you can and can’t claim.

What Travel Expenses Can You Claim?

Here’s a breakdown of common work-related travel expenses you may be able to claim.

Using Your Car for Work

If you use your personal car for work-related tasks (other than your commute), you may be able to claim those expenses. This might include:

• Driving between work sites

• Traveling from one job to another

• Meeting clients or suppliers

• Attending work-related courses

There are two ways to claim car expenses:

1. Cents per Kilometre
   You can claim a set rate (85 cents per kilometre for 2024, increasing to 88 cents in 2025) for work trips up to 5,000 kilometres per vehicle. Keep a diary to track the kilometres you drive for work.

2. Logbook Method
   This lets you claim actual vehicle expenses, like fuel, insurance, and servicing, based on how much you use your car for work. You’ll need to keep a logbook for 12 weeks to calculate the business percentage of your total car use. The percentage you record can be used for up to five years.

Important: You can’t claim travel from home to work unless you’re required to carry heavy tools that can’t be safely stored at work.

Other Work-Related Travel Costs

If you travel for work and your employer doesn’t reimburse you, you can claim:

• Tolls (bridge/tunnel)

• Public transport fares

• Airfares

• Parking

• Taxi or ride-share fares

However, fines for speeding or parking are not tax-deductible.

Meals and Accommodation for Overnight Travel

If your job requires you to stay overnight for work, you can claim:

• Accommodation

• Meals

• Incidental expenses (like laundry or phone calls)

If your employer gives you an allowance for travel, you can claim a deduction for any costs that exceed what they cover. The ATO provides guidelines for what it considers reasonable amounts for meals and accommodation. If your costs are below this amount, you don’t need detailed receipts—just proof that you paid.

Pro Tip: If you’ve spent more than the ATO’s reasonable amount, make sure to keep all your receipts and documents to back up your claim.

Other Situations Where You Can Claim Travel Expenses

You might also be able to claim travel costs if you:

• Attend a work-related conference or course
  For local events, you can claim mileage or transport. For interstate or overseas trips, you can claim airfares, accommodation, and meals.

• Visit your tax agent
  The cost of visiting your tax agent is deductible, including any related travel expenses.

Make Sure You’re Claiming Correctly

To avoid issues with the ATO, remember these key rules for claiming travel expenses:

1. You must have paid for the expenses yourself.

2. The expenses must be directly related to your work.

3. You need to keep records, such as receipts or a travel diary.

Getting these steps right will ensure you can claim your travel expenses and maximize your tax refund.

Need Help With Your Tax Return?

Unsure about what you can claim or how to keep records? The experts at Aero Accounting Group are here to help. We make it easy to understand your entitlements and get the most from your tax return.

Contact Aero Accounting Group today to get expert tax advice and take the stress out of your work-related travel claims!