Work-related daily travel expenses you can claim
Travel expenses that you claim must directly relate to your work as an employee. These expenses may include:
- work-related car expenses
- expenses for motorcycles and vehicles with a carrying capacity of one tonne or more, or nine or more passengers
- actual expenses - such as any petrol, oil and repair costs if you travel in a car that is owned or leased by someone else
- public transport - including taxi fares
- bridge and road tolls
- parking fees
- short-term car hire.
Generally, the cost of normal trips between home and work is a private expense that you cannot claim an income tax deduction for. However, as an employee, there are certain situations where you may be able to claim deductions for travel between your home and workplace.
Transporting bulky equipment and tools
You can claim the cost of using your car to travel between your home and work if all of the following apply:
- you have to carry bulky equipment or tools you need to use at work
- it is essential to transport the equipment or tools to and from work and it is not done as a matter of convenience or personal choice
- there is no secure storage area at your workplace.
Transporting luggage
You cannot claim a deduction for the cost of transporting your luggage to and from the airport as this is a private expense.
Travelling between workplaces
Work-related daily travel expenses also include the cost of travel:
- directly between two separate workplaces - for example, when you have a second job (see example 1)
- from your normal workplace to an alternative workplace while you are still on duty, and back to your normal workplace or directly home (see example 2 and example 3).
- from your home to an alternative workplace, and then to your normal workplace or directly home.
Example 1 - travelling directly between two separate workplaces
Mia is a flight attendant who has a second job at a supermarket, where she works in the mornings. On most days, Mia travels directly from the supermarket to the airport to start her afternoon shift with ABC Airlines. Mia can claim the cost of her travel from the supermarket to her second job at the airport.
On occasion, Mia finishes work early at the supermarket, and has time to go home and change into her uniform for her shift at ABC Airlines. On these occasions, Mia is not entitled to claim the cost of her travel from the supermarket to home, and from home to the airport, as she has not travelled directly from one job to the other.
Example 2 - travel for training that you can claim
David was recently designated as a first-aid person to assist in emergency work situations. He travels from the airport to attend a first-aid training course while still on duty and then travels directly home.
The cost of the journey from the airport to the first-aid training course and then home is an allowable deduction. David is also allowed a deduction for the cost of the training course if he is not reimbursed for the amount.
Example 3 - travelling from main workplace to alternate workplace
Jo works for ABC Airlines and one day per month is required to travel from her airport office to the city to give management an update of her team's performance. These meetings usually last three hours and then she returns to her office at the airport.
The cost of the round trip from the airport to the city office and back to the airport is work related and the cost of the journey she incurred would be tax deductible. For example, if she used a taxi and was not reimbursed for the fare, the taxi fare she paid for would be tax deductible. If she used her own car, she can claim her car expense by using the cents per kilometre method for the number of kilometres she travelled in this trip.
Example 4 - travel that you cannot claim
Maria works for Quality Airlines and is regularly employed at one workplace some days and at another workplace on other days. In both cases, the workplaces are considered to be the normal workplaces where Maria performs her normal duties. The cost of travel between home and the workplaces is not an allowable deduction.
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If you travel to and from a place of education because you are completing a work-related education course, you may be entitled to claim the travel costs as a self-education expense at label D4 Self-education expenses on your income tax return.
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Sections within Work-related daily travel expenses you can claim
Last Modified: Tuesday, 21 May 2013