Who This Guide Is For
This guide is for Australian employees and sole traders who travel as part of their work — whether you're a sales representative covering a territory, a tradie moving between job sites, a consultant flying interstate for client meetings, a community nurse visiting patients, or a remote worker attending the occasional industry conference.
If your role requires you to be somewhere other than your regular workplace or home office, you are likely incurring travel expenses that may be tax deductible. The ATO draws a critical distinction between travel to work (commuting — not deductible) and travel for work (business travel — deductible) (ATO guidelines). Understanding this line can mean thousands of dollars difference in your tax refund.
What Travel Expenses Can You Claim
1. Travel Between Worksites
If your job requires you to travel between different work locations during the day, those travel costs are fully deductible. This is one of the most valuable — and most overlooked — deductions for workers with multiple job sites.
According to the ATO, travel between two separate workplaces is deductible because neither is your "home base" in that context. The key test: are you already at work when the travel begins? If yes, the journey between sites counts as work travel.
Who this applies to:
- Tradies moving between construction sites
- Community nurses visiting multiple patients
- Delivery drivers travelling between depots
- IT technicians servicing different office locations
- Real estate agents showing multiple properties
Example calculation: A community healthcare worker visits 6 client homes per day, averaging 80 km daily. Using the 88 cents per kilometre method (FY2025–26 rate): 80 km × $0.88 × 230 working days = $16,192 in deductible work travel per year.
2. Overnight Business Travel
When work requires an overnight stay away from your usual residence, you can claim a broad range of expenses. This applies whether you're travelling interstate for a project, attending a multi-day training course, or visiting a regional branch.
Deductible overnight travel expenses include:
| Expense Category | What's Covered | Record Required |
|---|---|---|
| Accommodation | Hotel, motel, serviced apartment, Airbnb | Receipt or invoice |
| Meals | Reasonable meal costs (ATO publishes daily rates as guide) | Receipts or diary entries |
| Incidental expenses | Laundry, phone calls, airport parking, Wi-Fi | Receipts where possible |
| Transport at destination | Rental car, taxi, rideshare, public transport | Receipts or trip records |
Critical rule: You can only claim for the nights you are genuinely away for work. If you extend a business trip by two days for personal reasons, those two days' accommodation, meals, and incidental costs are not deductible.
Example: A management consultant flies from Melbourne to Perth for a 3-day client engagement. Airfare ($680 return), 3 nights hotel ($240/night = $720), meals ($70/day = $210), and airport transfers ($120). Total deductible: $1,730.
3. Conference and Seminar Travel
Attending a conference, seminar, workshop, or professional development event directly related to your current employment? The costs are fully tax deductible — but the connection to your role must be clear and demonstrable.
Deductible conference costs:
- Registration and ticket fees
- Travel to and from the conference venue (flights, trains, driving)
- Accommodation and meals during the event
- Conference materials, course notes, and required textbooks
The ATO's "direct connection" test: A software engineer attending AWS re:Invent? Clearly deductible. That same engineer attending a property investment seminar? The ATO would almost certainly reject it — it's not connected to earning assessable income as a software engineer.
4. Car Expenses for Work Travel
When you use your own car for work-related travel (not commuting), you can claim using one of two ATO-approved methods:
| Method | Rate / Basis | Claim Cap | Best For |
|---|---|---|---|
| Cents per kilometre | 88¢/km (FY2025–26) | Max 5,000 km ($4,400) | Occasional work driving, simple records |
| Logbook method | Actual expenses × business-use % | No cap | High business-use vehicles, higher claims |
Example — Cents per km: A sales rep drives 3,200 km for client visits. Claim: 3,200 × $0.88 = $2,816.
Example — Logbook method: The same sales rep keeps a 12-week logbook showing 65% business use. Annual car costs (fuel, insurance, rego, servicing, depreciation) total $12,000. Claim: $12,000 × 65% = $7,800 — substantially higher than the cents-per-km method.
5. Rideshare, Taxi, and Public Transport
Work-related trips on public transport (train, bus, ferry, tram), rideshare services (Uber, DiDi, Ola), or taxis are deductible when the journey is for work purposes.
Examples of deductible transport:
- Train fare from your office to a client's premises for a meeting
- Uber from the conference centre back to your hotel
- Taxi from a worksite to pick up urgent supplies
- Bus fare between two different offices of your employer
Record-keeping tip: Screenshot your rideshare trip history immediately after the trip. Myki, Opal, and Go Card statements also serve as evidence — download them regularly so you don't lose historical data.
Common Mistakes People Make
| Mistake | Why It's Wrong | What to Do Instead |
|---|---|---|
| Claiming the daily commute | Travel from home to your regular workplace is private, not work-related | Only claim travel that begins after you have started work for the day |
| Claiming personal extension days on a business trip | Only the work-related portion of the trip is deductible | Clearly separate business and personal days; apportion shared costs |
| No travel diary kept | ATO expects evidence of the work purpose, not just receipts | Keep a simple diary: date, destination, purpose, km (if driving) |
| Using cents-per-km above 5,000 km | The 5,000 km statutory cap applies | Switch to the logbook method if your business km exceeds 5,000 |
| Claiming 100% of a mixed-purpose trip | You can only claim the work-related proportion | Apportion costs reasonably; be prepared to justify your split |
Records to Keep
- Travel diary or log: date, destination, purpose, and kilometres travelled (if driving)
- Receipts for accommodation, flights, and meals over $10
- Conference or seminar registration confirmations
- Rideshare trip history screenshots and taxi receipts
- Public transport statements (Myki, Opal, Go Card, Transperth)
- A 12-week logbook (if using the logbook method), refreshed every 5 years
- Employer travel allowance statements (if you receive an allowance)
Quick Checklist
- Do I travel between different worksites (not home ↔ regular office)?
- Have I kept a travel diary with dates, destinations, and work purpose?
- For overnight trips: do I have accommodation and meal receipts?
- Am I using the correct car expense method (cents-per-km or logbook)?
- Have I separated business travel days from personal extension days?
- Are my conference or seminar costs directly connected to my current role?
- Do I have ride-share and public transport records?
- Have I excluded my daily commute from all claims?
Complex travel arrangements — multiple worksites, interstate projects, mixed-purpose trips, international business travel — can make your tax return significantly more complicated. a registered tax agent (see the directory) Still unsure whether you need a tax agent this year? See our decision guide.
*Disclaimer: This is general information only and does not constitute tax advice. Individual circumstances vary. Consult a registered tax agent for advice specific to your situation.*