You cannot claim a deduction for the travel expenses you incur if any of the following apply:
your employer reimburses your expenses
you get a job that results in you having to incur travel expenses because you choose not to relocate
you live away from your usual home to perform your work.
If you live away from home to perform your work you may receive a living-away-from-home allowance from your employer. Because you cannot claim a deduction for your expenses, your employer must pay fringe benefits tax on the allowance and you do not need to include the allowance on your income tax return.
Your employer should not show the allowance on your payment summary. If it appears on your payment summary, check with your employer that it has not been shown by mistake.
Example 4
Joe lives in the city and applied for a job to work on a large construction project near a country town. He is paid an allowance to meet his accommodation and meal costs. As Joe applied for the job in the country town and has chosen not to relocate, he is not entitled to a deduction for his expenses. Joe's allowance is a living-away-from-home allowance that his employer must pay fringe benefits tax on. The allowance should not be shown on Joe's payment summary.
Sections within Work-related overnight travel expenses
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