Records you need for travel expenses
Unless an exception applies, you must keep records to support your claims for travel expenses. This may be a combination of:
- Written evidence of your expenses, such as receipts
- Travel diary or similar record of your travel activities.
You need to keep your travel expense records for 5 years from the date you lodge your tax return.
If you don't keep written records of your travel expenses, you can't claim your travel expenses as a deduction.
If you receive a travel allowance from your employer, you may be eligible for the record keeping exception.
Written evidence of your expenses
Written evidence of your expenses is a receipt or other document (paper, digital or electronic) that you get from the supplier of the goods or services. It must include all of the following:
- name of the supplier
- amount of the expense (in the currency in which you incur the expense)
- nature of the goods or services
- if this is not shown on the document, you can write the missing details on the document yourself. You must do this before you lodge your tax return
- date you incur the expense
- if this is not shown on the document, you can use your bank statement, credit card statement or some other reasonable, independent evidence to show when you paid the expense
- date the receipt or document is created.
If you incur the expense in Australia the document must be in English. If you incur the expense in another country the document can be in a language of that country.
Travel diary or record of your activity
A travel diary is a document in which you record your travel activities.
The purpose of a travel diary is to help work out the work-related and private elements of your trip. You can only claim deductions for the work-related part of your expenses.
Do you need to keep a travel diary?
You don't need to keep a travel diary if you are away for fewer than 6 nights in a row.
If you are away for 6 or more nights in a row, you generally need to keep a travel diary.
If you receive a travel allowance from your employer, there are some circumstances where you may not need to keep a travel diary, even if you are away for 6 or more nights in a row.
Although you don’t need to keep a travel diary if your trip is for less than 6 nights in a row, you may still find it helpful to keep details of your travel.
How to keep a travel diary
For each activity on your trip, record:
- where you were
- what you were doing
- when you stopped for meals
- the date, and start and end times, of the activity.
Record the activity before it ends or as soon as possible afterwards. The diary must be in English.
Example: travel diary
Noel is a manager of a tool manufacturing company that has plants in Australia and New Zealand. He travels to New Zealand for 9 days to attend a conference in Auckland and visit the factory in Christchurch.
Before returning to Australia, Noel spends a few days visiting friends and sightseeing near Christchurch.
As Noel will be staying away from his home for more than 6 nights, he keeps the following diary of his travel.
Date |
Activity |
|---|---|
Mon 7 October |
7:10 am flight to Auckland. Arrive 12:15 pm 6:30 pm – 9:30 pm Opening night of conference |
Tue 8 October |
9:30 am – 4:30 pm Conference |
Wed 9 October |
9:30 am – 4:30 pm Conference 5:00 pm – 6:30 pm Teleconference with Australia |
Thu 10 October |
9:30 am – 5:30 pm Conference |
Fri 11 October |
9:00 am flight to Christchurch, arrive 10:25 am 11:30 am – 6:00 pm Work at Christchurch plant |
Sat 12 October |
Day off |
Sun 13 October |
8:30 am – 12:30 pm Management planning session |
Mon 14 October |
8:00 am – 6:30 pm Work at Christchurch plant |
Tue 15 October |
8:00 am – 3:00 pm Work at Christchurch |
Wed 16 October |
Holiday with friends |
Thu 17 October |
Holiday with friends |
Fri 18 October |
Holiday with friends 6:05 pm flight to Sydney, arrive 7:25 pm |
Noel's diary entries show he was travelling for 12 days, 3 of these days are for a private purposes. He can only claim deductions for the work-related part of his travel. He can claim 75% of the cost of his flights (the part of the trip that was work-related).
Noel keeps his travel records for a period of 5 years from when he lodges his tax return.
End of example