Travelling for work can be expensive, but many of those costs may be tax deductible if you meet the Australian Taxation Office criteria. Understanding how to legally maximise your work-related travel deductions can significantly reduce your taxable income and improve your tax outcome for the 2025–26 financial year, lodged in 2026.
This guide explains what you can and cannot claim, how the ATO defines work-related travel, and how to substantiate your claims correctly.
What Are Work-Related Travel Deductions?
Work-related travel deductions are expenses you incur while travelling to perform your job or business duties. These expenses must be directly related to earning assessable income, must not be reimbursed by your employer, and must be supported by valid records.
Common examples include airfares, taxi fares, rideshare or public transport costs, accommodation and meals for overnight travel, car hire, tolls, parking fees and other travel expenses directly linked to work duties.
Legal ATO Requirements for Claiming Deductions
To claim work-related travel deductions in 2026, your expenses must satisfy specific ATO conditions.
First, the expense must be directly related to your work duties and not personal in nature. Second, you must have paid for the expense yourself and not been reimbursed by your employer. Third, you must keep appropriate records such as receipts, invoices or travel diaries, especially if your total claim exceeds $300. Finally, travel between home and your regular workplace is generally considered private and is not deductible.
Work-Related Travel You Can Claim
If your job requires you to stay away from home overnight, you may be able to claim accommodation, meals, incidentals, and transport costs such as flights or trains. These expenses must be necessary for work and not include private activities.
Local travel between different work sites during the day is generally deductible, provided it is not part of your normal commute.
If you use your own vehicle for work purposes, such as travelling between client locations or job sites, you may claim car expenses using either the cents-per-kilometre method or the logbook method. The method you choose will depend on how frequently you use your vehicle for work and how detailed your records are.
What You Cannot Claim
There are several common expenses that cannot be claimed. Travel between home and your regular workplace is not deductible.
Personal activities or leisure expenses added to a work trip cannot be claimed. Expenses that have been reimbursed by your employer are also not deductible. Claiming private costs as work-related may result in penalties if reviewed by the ATO.
Tips to Maximise Your Work-Related Travel Deductions
Keeping accurate and detailed records is essential. Save receipts, tickets and invoices, and note the purpose of each trip. Maintaining a travel diary helps demonstrate how the expense relates to your work.
If a trip includes both business and personal activities, only the work-related portion can be claimed. Separating these costs clearly reduces audit risk.
For regular vehicle use, maintaining a valid logbook may allow you to claim a higher deduction than using a flat kilometre rate. Professional advice can also help ensure your claims remain compliant while maximising allowable deductions.
Practical Examples of Claimable Travel Expenses
If you attend an interstate conference for work and stay overnight, your accommodation, meals and transport expenses may be deductible if the trip is solely work-related.
If your job requires you to visit multiple work sites in one day, the travel between those locations may be deductible.
If you regularly drive long distances for work, you may be able to claim car expenses provided you have the required records to substantiate the claim.
Why Professional Tax Advice Matters
Work-related travel deductions can be complex, especially when allowances, reimbursements or mixed-purpose travel are involved. Seeking professional guidance helps ensure you claim what you are entitled to without risking compliance issues.
Working with experienced advisors also helps reduce audit risk and ensures your tax return is prepared accurately.
Key Takeaway
Work-related travel deductions can significantly reduce your tax liability in 2026 when claimed correctly. Understanding ATO rules, keeping accurate records and seeking professional advice are the best ways to maximise deductions while staying compliant.
Frequently Asked Questions
What travel expenses can I claim in 2026?
You can claim travel expenses directly related to earning your income, including transport, accommodation and meals for overnight work trips.
Can I claim travel from home to work?
In most cases, no. Travel between home and your regular workplace is considered private and is not deductible.
Do I need receipts to claim travel expenses?
Yes. If your total claim exceeds $300, written evidence such as receipts or invoices is required.
How long should I keep my travel records?
Travel expense records should generally be kept for at least five years from the date you lodge your tax return.
Can I claim meals if I do not stay overnight?
No. Meal expenses are only deductible when overnight travel is required for work purposes.
Get Expert Tax Support Today
If you want personalised advice and accurate tax preparation, Prowess Business Advisors is here to help. Whether you need a trusted tax accountant parramatta or professional support from a tax accountant blacktown, our experienced team ensures your deductions are maximised while remaining fully compliant with ATO requirements.
Contact Prowess Business Advisors today to take the stress out of tax time and make the most of your work-related travel deductions.