Business Travel & Accommodation — Australia Tax Rules

Claim travel and accommodation costs when working away from your normal location.

Claimable: Fully claimable · Tax authority: ATO

ATO Rules

• Domestic and international airfares for genuine business travel are fully deductible.
• Accommodation when staying away overnight for business is fully claimable.
• Meals and incidental expenses while travelling for business are deductible.
• The ATO publishes reasonable travel allowance amounts (updated annually via Tax Determination) — claims within these don't require every receipt for domestic travel.
• Travel combining business and private purposes must be apportioned — only the business component is deductible.
• A travel diary is mandatory for domestic trips of 6 or more nights, and for all overseas travel.

Limits

No cap. ATO reasonable amounts: check TD 2024/1 (or latest) for domestic daily rates by city. Overseas rates vary by country and destination city.

Worked Example

Olivia flies Sydney–Melbourne for a 2-day client project: flights $320, hotel 1 night $220, meals $85. Total: $625. She extends by 2 personal days: the extra hotel and meals ($410) are NOT deductible. Only the business-purpose portion is claimed.

Record Keeping

• Keep all travel booking confirmations, boarding passes, and hotel invoices
• Record the business purpose of each trip
• Keep a travel diary for trips of 6+ nights domestically, and for all overseas travel
• Separate business travel costs from private components of combined trips
• Retain meal receipts for amounts exceeding ATO reasonable daily rates

Frequently Asked Questions

Do I need receipts for all travel expenses?

If claiming within ATO reasonable travel allowance amounts for domestic overnight travel, you don't need every receipt. For amounts exceeding the reasonable rates, or for all overseas travel, keep receipts. A travel diary is still required for 6+ night trips.

Can I extend a business trip for a holiday?

Yes, but you can only claim the business portion. If a return flight is $800 and you would have paid $800 regardless of the extension, the full flight cost is deductible. Extra hotel nights and meals for personal days are not.

Are Uber and taxi fares deductible?

Yes. Rideshare and taxi fares for business travel are fully deductible. Keep a record of the date, purpose, and destination.

What is a travel diary and when do I need one?

A travel diary records the details of each day: date, place, activity, and whether business or private. It is required for domestic trips of 6 or more nights and for all overseas travel — regardless of length. The ATO can deny claims for overseas trips without a valid travel diary.