Understanding Deductible Travel Expenses to Alternative Work Locations
Traveling for work can involve complex rules regarding what is and isn't deductible. This is particularly true when employees travel to alternative work locations—places other than their regular work sites, such as client premises or different offices of their employer.
When is Travel Deductible?
According to TR 2019/D7, the ATO states that costs incurred traveling directly from your home to an alternative work location are generally deductible. This is because such expenses are seen as being incurred in the process of gaining or producing assessable income. Deductions still apply even if the journey to the alternative work location includes incidental private activities.
However, deductions are not allowed if:
- The choice to work at an alternative location is merely for personal convenience.
- The nature of the employment is such that the work location does not affect the performance of duties, making any travel a matter of personal convenience.
Travel Between Work Locations
Travel expenses incurred when moving between two work locations (neither of which is your home) are also typically deductible. This is relevant when:
- You are traveling between different workplaces for the same employer.
- You are going to meet clients or traveling to any other location where your work duties are performed.
Nonetheless, you cannot claim deductions if:
- The travel arises from personal reasons.
- You are moving between work locations of different employers or different income-earning activities, unless specific conditions outlined in Section 25-100 are met.
Need More Information?
If you're unsure about how these rules apply to your specific situation or need more detailed advice regarding your travel deductions, don't hesitate to contact Tax Ideas Accountants & Advisers at +61 2 83181545, or book a consultation through our live calendar.
- Deductibility of Employee Transport Expenses (1)
- Deductibility of Employee Transport Expenses (2) – General Deduction Principles
- Deductibility of Employee Transport Expenses (3) – Key Principles of TR 2019/D7
- Deductibility of Employee Transport Expenses (4) – Between Home and a Regular Place of Work
- Deductibility of Employee Transport Expenses (5) – Geographically Distant Places of Work
- Deductibility of Employee Transport Expenses (6) – Changing Regular Place of Work
- Deductibility of Employee Transport Expenses (7) – Exceptions
- Deductibility of Employee Transport Expenses (9) – Between Home and a ‘Transit Point’
