What You’ll Learn:
- What qualifies as deductible work travel versus regular commuting in 2025
- The 5 main categories of claimable expenses: transport, accommodation, meals, communication, and other costs
- When travel diaries are mandatory and what information you must record
- Current ATO reasonable allowance rates for meals and incidentals (2024-25)
- Common travel expense mistakes that cost you money or trigger ATO attention
- Practical compliance checklist to maximise claims while staying ATO-compliant
The rules around work travel expenses have evolved in a big way since 2021 (goodbye, Covid era), and with the ATO’s increased scrutiny on deduction claims, getting this right has never been more important. Work-related travel expenses you can claim in 2025 include transport, accommodation, meals, and incidentals — but only when traveling away from your regular workplace for genuine business purposes.
As tax professionals who’ve helped thousands of Australians maximise their legitimate deductions, we’ve seen how proper understanding of travel expense rules can save you hundreds or even thousands of dollars. With work-related deductions contributing significantly to Australia’s tax gap, the ATO is paying closer attention to travel claims than ever before.
What Qualifies as Deductible Work Travel in 2025?
The fundamental principle hasn’t changed: you can claim work travel expenses when you’re required to travel away from your regular workplace for work purposes. Your regular workplace is where you normally perform your work duties — your employer’s office, a regular client site, or even your home if you’re a remote worker.
“Many clients assume they can claim travel to conferences or training events, even when the primary purpose includes significant personal benefit,” explains senior ITP tax advisor Sarah Chen. “This is one of the most common mistakes we see during our tax return preparation consultations
Examples of qualifying work travel:
- Traveling interstate for business meetings
- Visiting clients away from your regular workplace
- Work-related conferences or training (where work activities are primary)
- Site inspections away from your usual work location
What doesn’t qualify:
- Regular commuting between home and usual workplace
- Travel where the main purpose is personal
- Travel to your regular workplace from an unusual starting point
Pro Tax Tip: If you work from multiple locations regularly, none may qualify as travel expenses — the ATO considers these “regular workplaces.”
The 5 Main Categories of Claimable Travel Expenses
1. Transport Costs
All reasonable transport expenses are deductible when traveling for work: flights, trains, buses, taxis, and car expenses. For car travel, use either the cents per kilometre method (88 cents per km for 2024-25 and 2025-26) or the logbook method.
2. Accommodation
Hotel stays, serviced apartments, and short-term accommodation directly related to work travel are fully deductible. If you extend your stay for personal reasons, only the work-related portion qualifies.
3. Meals and Incidentals
Claim meal expenses when traveling overnight for work, typically using the ATO’s reasonable allowance rates updated annually.
4. Communication Costs
Work-related phone calls, internet access, and data usage while traveling are deductible. Keep records separating work from personal use.
5. Other Work-Related Expenses
Parking fees, tolls, laundry for extended trips, and expenses directly related to work travel qualify.
Travel Diary Requirements: When and How
A travel diary becomes mandatory when you’re travelling for 6 or more nights consecutively for work purposes. However, we recommend maintaining travel records for all work trips.
What to Record
Your travel diary must include:
- Dates and times of departure and return
- Places visited and accommodation details
- Business activities undertaken each day
- People met for business purposes
- Expenses incurred with supporting receipts
- Duration of business vs personal activities (if mixed purpose)
The ATO accepts digital travel diaries. Smartphone apps can make record-keeping easier with photos of receipts, GPS data, and calendar integration.
Case Study: Mark, a regional sales manager traveling throughout Queensland, maintained a comprehensive digital travel diary and claimed $8,400 in legitimate travel expenses. When the ATO requested documentation during a routine review, his detailed records resolved the matter quickly without adjustments. Make your life easier when it comes to tax time, and keep a travel diary like Mark does.
The 2024-25 Reasonable Allowance Rates
The ATO’s reasonable allowance rates determine how much you can claim for meals without detailed receipts. (That means yes, you can order the steak, but maybe not the bottle of wine or the cocktails by the pool.)
It’s important to note that these depend on your salary, too. Here’s an example of the reasonable rates for employees earning an annual salary of $143,650 or under:
High-cost locations (major cities, tourist destinations):
Breakfast: $33.90 | Lunch: $38.10 | Dinner: $64.95 | Incidentals: $21.80
Earn more? Your allowance is higher. Not eating in a high-cost, city location? Your entitlements may vary. Take a look at this document to be sure of what you can reasonably claim, depending on your circumstances. If your expenses exceed these rates, you need receipts and can only claim actual amounts spent (up to but not above the reasonable limits).
5 Common Work Travel Mistakes That Cost You Money
Tax rules are complex, we know. We want to help you avoid those. Here are some of the most common mistakes we see:
1. Conference and Training Misconceptions
Not all conference travel is automatically deductible. The ATO examines whether the primary purpose is work-related skill development or personal interest.
2. Mixing Business and Personal Travel
When extending work trips for personal reasons, only the work-related portion is deductible. You must apportion expenses fairly with detailed records.
3. Claiming Regular Commuting
Travel from home to your regular workplace is never deductible, regardless of distance or cost.
4. Inadequate Documentation
“We see clients lose significant deductions simply because they can’t provide adequate documentation,” notes ITP senior accountant David Williams. “The ATO’s data matching means they often know about your travel, but without proper records, you can’t claim the expenses.”
5. Family Travel Complications
Adding family members creates complications. You can only claim additional costs incurred for work purposes alone.
Special Situations & Advanced Scenarios
There are a handful of situations where the rules are slightly different. Here are some examples:
Multiple Workplace Locations: If your job requires regular work at multiple locations, travel between them during work hours is generally deductible.
Home-Based Workers: If you normally work from home but occasionally travel to your employer’s office, this may be deductible as travel away from your regular workplace.
International Travel: International business travel follows similar principles but with additional complexity around currency conversion.
Company Cars: Generally, you can’t claim expenses for travel in company-provided vehicles, but exceptions exist for additional costs like parking.
Your 2025 Work Travel Compliance Checklist
Still confused? We’ve got your back. Here is a checklist of all the steps you should take to ensure you’re claiming the right amounts, not overspending, and keeping the kinds of records you’ll need before your tax appointment with us:
Before Travel
- Confirm trip is primarily for work purposes
- Set up digital expense tracking tools
- Understand employer travel policies
During Travel
- Record daily activities in travel diary
- Keep all receipts (digital photos acceptable)
- Note business vs personal time for mixed trips
- Track car kilometers if driving
After Travel
- Organise receipts and match to diary entries
- Calculate expenses using current allowance rates
- Store records securely for 5+ years
- Book in your ITP appointment before tax time arrives
EOFY Preparation
- Compile annual travel expense summary
- Review for missed claims or documentation gaps
- Prepare supporting documentation for tax agent
When Professional Help Becomes Essential
Complex travel situations benefit significantly from professional advice. Modern work arrangements, international travel, and mixed business-personal trips can create scenarios where the wrong approach costs you money or creates compliance risks.
At ITP, our experienced tax professionals understand work travel deduction nuances and can help maximise your legitimate claims while maintaining ATO compliance and ensuring you don’t get caught up in an ATO audit scare. We’ve been helping Australians for over 50 years, and our travel expense expertise saves you both time and money.
Our comprehensive tax services include detailed travel expense reviews, and you can book a consultation at any of our office locations across Australia.
Maximising Your 2025 Travel Deductions
Work travel expenses remain valuable deduction categories, but the ATO’s increased scrutiny makes proper documentation and compliance totally crucial. The key is understanding what qualifies, maintaining excellent records, and claiming only legitimate expenses with proper substantiation.
The ATO’s data matching capabilities mean they often know about your travel through credit card and banking records (yep, you read that right). This makes proper documentation your best protection and ensures you can claim every entitled dollar.
Staying organised with travel expenses throughout the 2024-25 financial year will make tax time smoother and potentially more profitable. Good record-keeping systems and professional advice when needed typically pay for themselves through additional deductions you didn’t even know about, as well as avoided compliance issues.
FAQs: Your Work Travel Expense Questions Answered
Can I claim accommodation if I travel for work in Australia?
Yes, accommodation costs are fully deductible when you’re required to stay overnight away from home for work purposes, including hotels, motels, and serviced apartments.
What is considered a regular place of work by the ATO?
Your regular place of work is where you normally perform employment duties — your employer’s office, regular client sites, or home office if you’re remote.
Do I need a travel diary to claim work travel expenses in 2025?
A formal travel diary is mandatory for trips lasting 6+ consecutive nights. However, maintain travel records for all work trips to protect during ATO reviews.
Can I claim meals when traveling for work conferences?
Yes, meal expenses during work-related conference travel where you are away from home overnight are deductible using ATO reasonable allowance rates, unless conference registration includes meals.
What happens if I extend a work trip for personal reasons?
You can only claim the work-related portion. If extending doesn’t increase accommodation costs, accommodation remains fully deductible, but additional personal expenses aren’t claimable.
How do I calculate car expenses for work travel?
Use either cents per kilometer (88 cents for 2024-25, up to 5,000 km) or the logbook method for higher claims requiring detailed usage records.
Disclaimer: This article provides general information about work travel expense deductions and should not be considered personal tax advice. Tax laws are complex and change regularly, and individual circumstances vary significantly. Always consult with a qualified tax professional who can assess your specific situation. ITP Tax Professionals disclaims any liability for decisions made based solely on the general information provided in this article.