How Much Can I Claim for Travel Expenses?

Key Insights

• Flights, accommodation, meals (if staying overnight), car travel, parking, and tolls are generally deductible if they’re work-related.
• Keep business and personal travel separate. Only the business portion can be claimed as a work travel tax deduction.
• You can claim work-related travel expenses without receipts in limited cases, such as small incidentals or when using the cents-per-kilometre method.
• Keep records like receipts, travel diaries, and itineraries for at least five years to support your claims.
• Avoid common mistakes such as claiming private expenses, skipping travel diaries, or double-claiming reimbursed costs.
• Using expert corporate travel services helps employers manage compliance, reporting, and cost savings with confidence.

Not every trip or meal can be written off as a work expense. The ATO defines work-related travel as travel directly connected to your employment duties. That means the primary purpose of your trip must be work.

Common examples include:

• Visiting clients, suppliers, or project sites
• Attending work-related courses, meetings, or conferences
• Traveling between workplaces during the day (but not the daily commute from home to work)
• Staying overnight for interstate or regional business commitments

You can typically claim:

• Airfares and accommodation for business trips
• Meals and incidental expenses if you stay overnight for work
• Car expenses when travelling between job sites or to client meetings
• Public transport, taxis, or ride-share fares used for work purposes
• Parking, tolls, or road costs when related to business travel

For instance, if you fly from Sydney to Melbourne for a three-day conference, your airfare, hotel, meals, and local transport can all be claimed as work travel tax deductions. However, when personal and business activities mix (like tacking on a weekend getaway to a work trip), you can only claim the portion directly related to work. The rest is considered private and non-deductible.

This distinction becomes particularly important for employers managing larger teams or frequent travellers. Having professional corporate travel services in place helps track costs accurately and maintain compliance, especially when multiple employees combine business and leisure travel.

Claiming Work-Related Travel Expenses Without Receipts

One of the most common questions employees and business owners ask is whether they can claim work-related travel expenses without receipts.

The ATO generally requires evidence for every expense, but there are limited exceptions:

• Cents per kilometre method: You don’t need receipts, but you must be able to show how you calculated your kilometres.
• Travel allowance under ATO reasonable amounts: If you’ve received an allowance and your claim is less than the reasonable amount, receipts may not be required.
• Small incidental costs: For minor out-of-pocket expenses (like parking meters or tips), diary notes or bank statements may be enough.

Even if you’re not required to keep every receipt, you should still maintain evidence that demonstrates the travel was genuine. This can range from credit card statements to booking confirmations or a record of meetings attended.

If you’re unsure about your documentation requirements, our Legal and Tax Guidelines for Employers can help.

There’s no fixed amount for travel expense claims, and it depends on what you actually spend and the work-related proportion. However, the ATO sets out reasonable amounts for meals, accommodation, and incidentals when employees are travelling overnight for work.

If you receive a travel allowance from your employer and your expenses are below these reasonable limits, you can claim without keeping every single receipt. But remember: you can only claim what you actually spent, not the maximum allowance figure.

Claiming Car Travel

If you use your personal car for work, you can claim deductions using either the cents per kilometre method or the logbook method.

1. Cents per kilometre method

You can claim 88 cents per kilometre for the 2025 financial year, up to a maximum of 5,000 work kilometres per car. This method is simple, but you’ll need to keep a diary or record of your work-related trips to support your claim.

2. Logbook method

If you travel more than 5,000 kilometres or use your car frequently for work, a logbook may be better. Over a 12-week representative period, record your business travel and odometer readings. Once completed, this logbook is valid for five years and allows you to claim a percentage of your actual car costs (like fuel, insurance, servicing, and depreciation) as a work travel tax deduction.

Keep in mind, travel from home to your usual workplace is considered private, unless you’re carrying bulky tools that can’t be safely stored at work and are essential for your job.

Overnight Trips: Meals, Accommodation & Incidentals

If your work requires you to stay overnight, you can claim:

• Hotel or short-stay accommodation costs
• Meals such as breakfast, lunch, and dinner
• Airfares or public transport fares
• Taxi or rideshare fares
• Parking and tolls
• Incidentals like laundry or Wi-Fi

However, you can only claim these costs if:

1. You’re required to stay away from home overnight for work, and
2. You haven’t been reimbursed by your employer.

If you spend more than the ATO’s reasonable amount, detailed receipts are required.

These rules apply whether you’re a business owner or an employee. To make life easier, consider expert travel management for small businesses, which helps automate expense tracking, maintain digital records, and flag non-deductible costs.

Record-Keeping Tips to Support Your ATO Work-Related Travel Expenses Claims

ATO audits often focus on travel-related deductions, so it pays to keep strong records. Here’s what you’ll need:

• Receipts or invoices for accommodation, airfares, and transport
• Boarding passes, itineraries or travel diaries for overnight or mixed-purpose trips
• Credit card or bank statements as supplementary proof
• Logbooks or mileage records for car travel
• Evidence of the work-related purpose (such as emails or meeting schedules)

Digital copies are perfectly acceptable, as long as they clearly show the amount, date, and supplier. Keep your records for at least five years after lodging your return.

Spencer Travel Tip: Expense management software can help you store receipts digitally and tag expenses by category, saving time during tax season.

Common Mistakes to Avoid

Even with the best intentions, travel deduction errors are common. Here are some pitfalls to steer clear of:

• Claiming private travel as business-related
• Forgetting to separate personal days from work trips
• Assuming allowances automatically means you can claim deductions
• Not keeping a travel diary for overnight stays
• Double-claiming expenses already reimbursed by your employer

Keeping detailed, accurate records ensures you don’t miss legitimate deductions and stay compliant.

How Businesses Can Simplify Travel Expense Management

For Australian employers, managing employee travel costs is as much about convenience as it is about compliance. Partnering with a trusted corporate travel management company like Spencer Corporate Travel helps ensure accurate reporting, reduced costs, and streamlined travel policies.

Through our corporate travel services, businesses gain access to:

• 24/7 consultant support based in Australia
• Real-time reporting and expense tracking
• Negotiated airfare and accommodation rates
• Tailored travel solutions for small, medium, and large organisations

If your team travels often, professional oversight can make all the difference – saving you time, money, and the headache of handling ATO record requirements alone.

Making Business Travel Work for You

Understanding ATO work-related travel expenses doesn’t have to be complicated. With accurate records, clear policies, and professional support, you can make legitimate claims while staying compliant.

At Spencer Corporate Travel, we’re passionate about helping Australian businesses and professionals travel smarter, balancing cost savings with compliance. Whether you’re managing a single trip or a national travel program, our expert team can guide you through the process every step of the way.

Ready to make business travel easier and claim what’s rightfully yours? Contact Spencer Corporate Travel today to learn more about our corporate travel services and how we can support your next business journey.