Travel Expenses - for tax Purposes
When completing your tax return, there are certain travel expenses related to your work that you might be able to claim. These expenses must be directly related to earning income and not be private or domestic in nature.
The ATO has specific guides that have been tailored to your occupation and industry. The guides address specific expense claims that are suited for deductions in your industry and occupation type.
Byford Accountants can help to make sure that you are claiming your travel and vehicle expenses correctly.
To be eligible for a deduction, the travel expenses must meet the following criteria:
- You must have spent the funds and not been reimbursed for them.
- The expense must be directly connected to generating your income.
- Maintain records that demonstrate the incurrence of the expense, typically in the form of a receipt.
Some common travel expenses that you might be able to claim on your tax return include:
1. Vehicle expenses
If you use your car for work-related travel, you can claim either the actual vehicle expenses or the cents per kilometre method. Actual vehicle expenses include fuel, repairs, registration, insurance, and depreciation or lease costs. You must maintain a logbook to record the percentage of work-related travel.
2. Public transport expenses
You can claim the cost of using public transport, such as buses, trams, trains, taxis, or rideshare services, for work-related travel. Keep receipts or records of your travel to substantiate your claims.
3. Accommodation and meals
If you need to stay overnight for work purposes, you can claim the cost of accommodation and meals. However, there are certain meal deduction rules that apply, such as the 50/50 rule or the 12-week rule.
4. Airfare and other travel costs
If your work requires you to travel interstate or overseas, you can claim the cost of airfare, airport transfers, and other travel expenses. Keep in mind that there are specific rules for claiming travel expenses, such as the need to maintain records and the requirement to apportion expenses between work and private purposes.
5. Temporary work-related accommodation
If you need to live away from home for work, you may be eligible to claim the cost of temporary accommodation, such as hotel or serviced apartment expenses.
6. Tools and equipment
If you need to use tools or equipment for work-related travel, you can claim the cost of hiring, leasing, or purchasing these items.
Remember to keep accurate records of your travel expenses, such as receipts, logs, or diary entries, to support your claims and ensure compliance with tax laws.
The ATO’s Occupation and industry guides can help you to understand what expenses you can claim. You can learn more and view the industry and occupational guides via the below link.
For help with this and any other tax related services, contact Byford Accountants today.
