How to Easily Claim Travel Expenses for Work in Australia
An Australian accountant has shared practical insights on the simplest methods for taxpayers to claim work-related travel expenses. Typically, the Australian Taxation Office (ATO) mandates receipt retention for claiming tax deductions; however, there are notable exceptions.
Travel Allowance Exceptions
Hripsime Demirdjian, founder of Hive Wise, explained in an interview with Yahoo Finance that individuals receiving a travel allowance can forego receipt retention for certain deductions. Such allowances are often provided to workers whose jobs necessitate travel away from home, especially for overnight stays.
The travel allowance can help cover various expenses, including accommodation, meals, and minor incidental costs like parking and public transport. According to Demirdjian, the ATO offers specified "reasonable amounts" that taxpayers can claim daily without needing receipts.
Expense Variability
The amount you can claim hinges on the location of your travel, as costs can fluctuate significantly from one city to another, and are also impacted by your salary level. For instance, for the 2025 financial year, employees earning up to $143,650 can claim up to $358.90 per day for travel in Sydney, encompassing:
- Accommodation: $198
- Breakfast: $33.90
- Lunch: $38.10
- Dinner: $64.95
- Incidentals (e.g., parking): $23.95
Demirdjian highlighted that the ATO also offers reasonable amounts for international travel, though these amounts differ based on the destination.
Illustrative Example
The ATO provided a scenario of an accountant earning $150,000 annually who needs to travel to Sale in regional Victoria for work over four days each month. Her employer covers accommodation expenses directly and provides a daily allowance of $140 for meals and incidentals.
Her daily meal expenses totalled $105, which is below the "reasonable amount", allowing her to claim this without needing receipts. However, she must account for accommodation expenses, which are taken care of by her employer.
If her meal expenses had surpassed the reasonable amount, she would need receipts to back up that claim. Still, under the current tax regulations, if the claimed deductions remain within the reasonable parameters, it does not require proof through documentation.
Understanding Your Entitlements
Most employers issue travel allowances to employees regularly travelling for work-related duties. To ascertain entitlement to a travel allowance, employees should review their employment contracts or relevant industry awards. Gross earnings pay slips should also detail such allowances.
For additional guidance, the ATO website provides comprehensive information on travel allowance regulations and specifies the reasonable amounts you can claim without receipts.
Resources for Further Information
These resources will provide clarity on the claims process and the amounts eligible without the need for receipts.
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