Tax Return:: Claiming Tax Deductions for Transport/Travel Expenses

Hello, this is your tax and super specialist, P&C Tax Professionals.

Today, we would like to go through the travel expenses tax deduction for those interested in claiming it on their next tax return. In order to apply for the tax deduction, if the total expenses exceeds $300, you must keep a record of all the receipts and inform us of the expense details such as the total amount (in AUD) and the date as shown on the tax invoice.

Travel expenses generally covers the following costs that you incur but for which you are not reimbursed by the company you are working for:

> Transportation

> Food

> Hotel

> Seminar attendance fees

> Plane tickets, etc.

Please keep in mind that the travel expenses must be for a business trip that is closely related to your work. Costs that arise as a result of travelling between your home and work place is not allowable as a travel expense deduction as it is generally considered to be private in nature and the expenses are essentially putting you in the position to begin your work instead of being incurred during the course of your work duties. Moreover, it is also the case that people who work from home cannot claim the cost of travelling from their home to another place. On the other hand, transport expenses that you incur between two or more work places can be deducted from your income.

If you travel using your own vehicle while on a business trip, the work-use percentage of the vehicle during the business trip is subject to the tax deduction. Please refer to one of our earlier blog posts on the car expense deductions for more details regarding this matter.

If you did not use your own vehicle but have instead have used the plane or public transport at your own expense, be sure to keep the receipts for each of your business trips.

One of the many questions we receive is whether you can claim for the travel expense if there was no public transport available and you had no choice but to use your own vehicle or to ride a taxi to commute to work. Unfortunately, in this case, you would still not be able to claim a tax deduction for your travel expenses.

As mentioned earlier on, commuting between your home and work (or vice versa) cannot be claimed as a tax deduction but if you are a tiler for example, who needs to go and purchase materials during your work hours, in this instance, you would be able to claim the travel expenses as a deduction. Or perhaps if you are a farmer and need to move from one site to another, you will also be eligible to claim for the deduction.

Tax deductions for business travel and transportation expenses usually have a lot of grey area when it comes to determining whether or not you will be eligible. If you are unsure on whether an expense can be deducted from your income or not, we highly recommend that you consult with an experienced accountant before proceeding with your tax return.

As always, we are always open to further questions and enquiries. Please kindly direct your questions to our Official Facebook Page (P&C Tax Professionals - Australia) or to our email address at: pnctax@naver.com.

Thank you and bye for now!