It’s very easy to bifurcate the travel expenses that has actually been used for work related. Check out how you can claim travel expenses as tax deduction.
What you can Claim?
The taxpayer can claim travel expenses directly connected with their work. If their travel was partly private and partly for work, they can claim only the part that related to work.
One can claim expenses in travel that includes meals, accommodation and incidental expenses incurred while travelling overnight for work – eg:- attending interstate work conference or meetings.
Other travel expenses that the taxpayer may be able to claim air, bus, train,tram and taxi fares, bridges and road tolls, parking and car hire fees.
The taxpayer can claim for the cost of trips undertaken between home and work if:
They used their vehicle or had other travel expenses because they had to carry bulky tools or equipment that they used for work – for example, an extension ladder or cello their home was a base of employment – the taxpayer started their work at home and travelled to a workplace to continue the work, or
They had shifting places of employment – the taxpayer regularly worked at more than one site each day before returning home.
The taxpayer can claim the cost of using their care to travel directly between two separate places of employment – for example, when they had a second job.
What you can’t Claim?
Generally, if the travel does not involve an overnight stay, the taxpayer cannot claim for meals even if they received a travel allowance.
The taxpayer cannot claim a deduction for any expenses they incur for the direct operation of a car that their employer provides, which at any time is used privately by them or their relatives, even if the expenses are work related. Examples of direct operation expenses are petrol, oil and repairs. Such expenses form part of the operating costs of the car for fringe benefits tax purposes.
The taxpayer cannot claim the cost of normal trips between home and work as the expense is private. The travel is private and cannot be claimed even if:
The taxpayer did minor tasks – for example, picking up the mail on the way to work or home they had to travel between home and work more than once a day.
They were ‘on call’ – for example, the taxpayer was on stand-by duty and their employer contacted them at home to come into work.
There was no public transport near where they work.
They worked outside normal business hours – for example, shift work or overtime.
The taxpayer’s home was a place of business and they travelled directly to a place of employment.
Taxation Ruling TR 95/34 – Employees carrying out itinerant work- deductions, allowances and reimbursements for transport expenses has more information on travel expenses for employees who have shifting places of employment.
