The ATO has also released new guidance on work-related travel deductions. To claim for transport or other employee travel expenses (like accommodation and meals) in your tax return, you must have incurred the expenses as part of gaining or producing your taxable income. Private and domestic travel expenses, including the costs of your ordinary home-to-work travel, aren’t claimable.

Transport costs for work-related travel may be deductible, but the ATO will consider factors such as:

  • whether the travel is a necessary part of performing your work (you can’t pretend your family holiday’s a work trip);
  • whether your employer pays you to undertake the travel; and
  • whether you have to follow your employer’s instructions during the travel period.

Accommodation, meal and other incidental expenses are deductible as work-related only if your work has “special demands” or “co-existing work locations” that mean you have to sleep away from home.

TIP: We’re here to help – contact us to find out more about getting your work-related tax deductions right.