Deduction for Work-related Overnight Travel Expenses

(last updated on 26/03/2013)

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Construction and other workers often incur expenses relating to accommodation, meals and "incidentals" in performing their duties.
In recent years there has been an explosion in mining and related projects causing these construction and other workers to travel to various job locations on an itinerant basis. Here are some tax tips for claiming tax deductions for accommodation, meals and "incidentals".

You can claim a deduction for the full amount of your travel expenses where both of the following apply (see also our checklist on eTax and Allowable Deductions):
  • your employer requires you to travel to a worksite for a short period to perform work
  • it would be unreasonable to expect you to return home each day, which means you must stay at or near that worksite while performing that work.
This is the case unless the place at which you stay becomes your temporary residence. That is, you are living away from home for work purposes - see Overnight travel expenses you cannot claim.

Travel expenses include:
  • meals, accommodation and incidental expenses
  • car, air, bus, train, ferry and taxi fares between home and the site.
If you are claiming travel expenses and you receive a travel allowance from your employer you must record the allowance as income on your tax return at item 2.

For help with your eTax return see our eTax Return Checklist.

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