Tax Deductible Holidays

Whilst you can generally claim a deduction for any business travel expense directly connected with your current employment, any travel that is for private purposes must be appropriately apportioned.

For instance, airfares to and from the location of a work- related activity are fully tax deductible if the activity was the primary purpose of your trip. However, if there is a dual purpose for your travel, then apportionment of this cost is likely to be required.

To claim accommodation costs at a location, the work- related activity must extend over at least two consecutive days. If you decide to take on a holiday during the same trip, the extra costs are classed as private and not tax deductible. Therefore, all business-related costs are to be clearly defined on your documentation.

Costs of travel, meals and incidentals for the days you attend a work-related activity are also tax deductible, however meals may be limited by the Commissioner’s reasonable Travel allowance rates amount for the relevant year.