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  • Apportionment of travel expenses



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Where travel related to your rental property is combined with a holiday or other private activities, you may need to apportion the expenses.

    If you travel to inspect your rental property and combine this with a holiday, you need to take into account the reasons for your trip. If the main purpose of your trip is to have a holiday and the inspection of the property is incidental to that main purpose, you cannot claim a deduction for the cost of the travel. However, you may be able to claim local expenses directly related to the property inspection and a proportion of accommodation expenses.

    Example: Apportionment of travel expenses

    The Hitchmans also owned another rental property in a resort town on the north coast of Queensland. They spent $1,000 on airfares and $1,500 on accommodation when they travelled from their home in Perth mainly for the purpose of holidaying in the resort town, but also to inspect the property. They also spent $50 on taxi fares from the hotel to the rental property and return. The Hitchmans spent one day on matters relating to the rental property and 9 days swimming and sightseeing.

    No deduction can be claimed for any part of the $1,000 airfares.

    The Hitchmans can claim a deduction for the $50 taxi fare.

    A deduction for 10 per cent of the accommodation expenses would be considered reasonable in the circumstances. That is, Mr and Mrs Hitchman can each claim a deduction of $100-a total of $200-as shown below:

    $50 + $150 (see note) = $200

    Note: $150 = 10% × $1500

    End of example
    Last modified: 11 Dec 2019QC 16578