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  • Transport and travel expenses

    You can claim transport and travel expenses you incur when you travel in the course of performing your work duties.

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    What are transport expenses?

    Transport expenses may include the costs you incur for:

    Transport expenses also include the actual costs you incur – for example, fuel expenses, when you use someone else's car or other vehicle.

    You may receive an allowance from your employer for travel or accommodation expenses. Your employer may also pay you an award transport payment for transport expenses.

    Transport expenses don't include removal or relocation expenses to transfer or relocate for work.

    What are travel expenses?

    Travel expenses are the expenses you incur when you travel and stay away from home overnight in the course of performing your work duties. They include:

    You may need to keep specific records for your travel, accommodation and incidental expenses, such as a travel diary. That is, unless travel allowance record keeping exceptions apply.

    Completing transport and travel expenses in your tax return

    How you claim your work-related transport expenses depends on your circumstances.

    You claim your deduction for work-related transport expenses as work-related car expenses in your tax return if both of the following apply:

    • your expenses relate to a car you owned, leased or hired under a hire-purchase agreement
    • you work out your deduction using either the  
      • cents per km method
      • logbook method.

    You claim your deduction for work-related transport expenses as work-related travel expenses in your tax return if your expenses relate to:

    • a vehicle  
      • other than a car such as a motorcycle or scooters
      • with a carrying capacity of greater than one tonne such as utes or heavy vehicles
      • with a carrying capacity of nine or more passengers such as a van.
    • car-hire fees
    • costs you incur when driving someone else's car or other vehicle for work purposes – for example, fuel expense
    • air, bus, train, tram, ferry, taxi and ride-share or ride-sourcing fares
    • bridge tolls, road tolls or car parking expenses associated with work-related transport expenses.

    You claim your deduction for all work-related travel expenses (accommodation, meal and incidental expenses) as work-related travel expenses in your tax return.

    Last modified: 21 Jun 2022QC 31916