Australia is a vast and diverse country and many companies (especially those in the mining industry) will require employees to travel across the country for work.

Whether your travel is by plane or car, or if you are an employee of a business or an employer, it is extremely important to have a basic understanding on what travel costs you can claim amongst your travel deductions. Noncompliance with these rules around substantiating travel costs can have consequences.

What constitutes as a travel substantiation cost?

According to the Australian Taxation Office (ATO), substantiation is the process of providing evidence to support your claim for deduction. This means you need to be keeping a record of all expenses associated with and incurred during a work related travel trip, so keep all of your receipts, invoices, travel itineraries, etc.

If you are an employee

You are responsible for keeping track of any records of expenses incurred during travel.

• Accommodation
• Transportation (Taxi, Uber, Public Transport)
• Meals

Your expenses must be directly related to work activities and any private expenses are not tax deductible. For example: You get a cab from your accommodation to the location which you are visiting for business purposes (i.e. Client/Customer), this is deductible.

Keep in mind that if the nature of your job is Fly-in, Fly-out (FIFO) your travel expenses need to be out of the ordinary work arrangements. For example: if you needed to travel temporarily to another location for a meeting or training. If you are using your own personal vehicle then you can claim the cost of vehicle expenses. Tax deduction rules are frequently changing in this area and it is important to be extremely vigilant with what you are claiming and keep up to date with what you will be able to claim.

If you are an employer / owner of a business

If you are sending your employee on a business related trip you will be able to claim:

• Airfare Costs
• Public Transportation or Car Rental
• Accommodation

Keep in mind that specific expenses can only be claimed depending on the nature of the travel and your policies.

You are responsible for implementing clear policies that outline what expenses related to work are eligible for reimbursement and what associated documents are required.

Your employees should be aware of what they are responsible for keeping a track of and having a policy that is communicated to your employees will ensure for a smooth and easy process for all involved.

If you are unsure about your travel related claims you should always consult with a professional for advice to avoid any issues.