When your job requires you to travel away from home overnight, the costs you incur can be deductible. Accommodation, meals, and transport costs for genuine work travel are claimable — with the key requirement being that the purpose is work and you have appropriate records. Day trips to work locations in the same city are handled differently from overnight or multi-day travel.
What Qualifies as Work-Related Travel
Deductible work travel means you are:
- Required to travel away from your usual work location to a different location for work purposes
- Away from home overnight (or multiple nights) for that work
- Incurring costs that your employer does not reimburse
This includes: interstate conferences, working in a remote location for a period, field work, overnight sales trips, attending training at a different city, or FIFO (fly-in fly-out) arrangements.
What You Can Claim
| Expense | Condition |
|---|---|
| Accommodation | Directly work-related overnight stay |
| Meals | Consumed while away from home overnight for work |
| Flights and transport | To travel to the work destination |
| Taxis, rideshare | Between accommodation and work location |
| Car hire | Work-related portion |
| Phone calls for work | Work proportion |
| Incidentals (laundry on extended trips) | Directly related to work travel |
What You Cannot Claim for Travel
- Costs for a travel companion (partner or family member) with no work purpose
- Personal sightseeing or leisure activities during a work trip
- Upgrades to business class or premium accommodation beyond what your employer or work requires (or an amount proportional to the standard rate)
- Costs reimbursed by your employer
Travel Diary Requirement
If you are away from home for 6 or more consecutive nights, the ATO requires a travel diary to substantiate your claims. The diary must record:
- Each activity — including start time, duration, and location
- The business purpose of each activity
- Any private activities undertaken during the trip
You do not need a travel diary for trips shorter than 6 consecutive nights — but written records (receipts, boarding passes, hotel invoices) are still required.
Travel Allowances
Many employers pay a travel allowance to cover accommodation, meals, and incidentals when employees travel for work. If you receive a travel allowance:
- Include it as income on your return (it should appear on your income statement)
- Claim your actual work-related travel expenses as a deduction
- If your expenses equal the allowance, net effect is zero
- If your expenses exceed the allowance, you deduct the excess
The ATO publishes annual reasonable amounts for domestic travel allowances. If your claims are within these amounts and you have a travel diary (for trips over 6 nights), you may not need all receipts. Above the reasonable amounts, receipts are required.
FIFO Workers
Fly-in fly-out (FIFO) workers face specific rules. The travel from home to the work location (the remote site) is generally private travel — you are travelling to your place of work, not between workplaces. However, if your employer requires you to assemble at a designated city location before flying to the site, certain travel costs may be deductible.
FIFO workers may also be able to claim zone tax offsets for remote area living — see the relevant ATO guidance.
Frequently Asked Questions
I drove to a work conference in another city and stayed two nights. What can I claim? You can claim: fuel (or cents/km) for the drive, accommodation for two nights, and meals during the overnight stay. Keep receipts and a note of the conference name, location, and your work purpose.
I mix work and personal activities on an interstate trip. Can I still claim? Partial claims are allowed based on the proportion of work vs personal. If the primary purpose is work and personal activities are incidental, the main travel costs (flights, accommodation) may be fully deductible with personal activity costs carved out. If the primary purpose is personal (you extend a holiday with a day of work), only the additional costs attributable to the work component are deductible.
My employer reimburses me for all travel costs. Can I still deduct them? No. If costs are reimbursed, you have not borne the expense personally. No deduction is available for reimbursed amounts.
Can I claim travel between my home office and a client’s office? If your home is your principal work location (e.g., you are a contractor who works primarily from home), travel from your home to a client site may be deductible as travel between workplaces. This is different from an employee whose home is simply a convenient place to start the day.
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.