Employees can incur substantial work-related travel expenses. This is almost unavoidable given the nature of personal business transactions and the importance of outbound client management. These travel expenses can, however, boost your tax refund with some big tax deduction claims!
Of course, if your employer has already reimbursed you, you cannot claim! Though if the claim is up to you, be sure to follow this guide.
Work related travel expenses refer to any travel related expense that directly relates to your specific job function. Depending on your circumstances, and provided you have the necessary documentation, you can claim the cost of transport, incidentals and even meals if you were away overnight!
Travel expenses you can claim on your tax return under item D2 can include:
- Incidental expenses
- Air, bus, train and taxi fares
- Bridge and road tolls
- Parking fees
- Car hire charges
- Meals (if your travel included an overnight stay)
To claim any work travel expenses, your travel must be specifically work-related. Taxi, bus, train and rental car expenses are tax deductible if you travel for work purposes.
Keep a travel diary to support your claim, particularly if your work trip goes overnight or longer. If you don’t have a travel diary you can download a travel diary template from etax.
You can also claim the cost of travel between two different workplaces. These rules apply whether you travel by train, bus, taxi or your own private vehicle.
Do not under any circumstances forget the golden rule – keep your receipts!
For more information on tracking your expenses, or claiming tax deductions, please visit nudgeaccounting.com.au or call 1300 068 343.