If you need to travel far or to another city for work and stay overnight before starting your duties, you might wonder whether these costs are deductible. The general tax rule in Australia is that travel from home to your regular place of work is considered private and not deductible, even if it involves flying long distances or staying overnight.
For example, if your employer requires you to travel at your own expense to the same city every week and then provides transport to various worksites the following day, the initial flight and overnight accommodation are still regarded as private travel. These expenses are essentially about putting you in the position to start work, not costs incurred while doing your actual job.
The ATO explains this in TR 2021/1 Income tax: when are deductions allowed for employees’ transport expenses, which gives the example of an employee who regularly flies interstate for work. Even though she stays overnight, the costs are not deductible because they are related to her personal choice of where to live compared to where she works.
That said, there are limited circumstances where travel expenses may be deductible, such as:
- Co-existing workplaces – where you genuinely have two regular places of work (for example, one near home and another interstate).
- Special demands travel – where the employer directs you to travel, pays you for the travel time, and the travel is part of the job itself (not just getting to work).
In most cases, though, if the travel is simply to get closer to your normal workplace, the costs will not be deductible.
Key takeaway: If you are flying to the same city each time and staying overnight before going to work, these travel and accommodation expenses will usually be considered private and not deductible. To be deductible, the travel must be clearly linked to carrying out your work duties—not just getting to your workplace.
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
Although every effort has been made to verify the accuracy of the information contained on this page and on our website, Investax Group, its officers, representatives, employees and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.
