I am an IT specialist and I have recently moved to Albury.
I have decided to keep my job in Canberra, so on Sunday nights I drive or fly from Albury to Canberra and I come home on Thursdays.
Can I claim a tax deduction for these travelling expenses?
Knowing when to claim a tax deduction for travelling expenses is often misunderstood – as you can only claim them as a tax deduction under specific circumstances.
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Whether you are able to claim a tax deduction depends on where your regular place of work is.
Expenses incurred when travelling from home to your regular place of work are not deductible, regardless of the method of transport that was used.
This means that because your regular place of work is Canberra, you aren’t able to claim a tax deduction for travelling there from Albury.
However, if you are required to travel to attend a conference, meeting or other work related activity, then those travelling expenses may be deductible.
For example, let’s assume your circumstances change and you worked remotely from home in Albury.
If you needed to travel to Canberra for a meeting with your employer or to attend a conference, then you would be able to claim any travel expenses expenses you incurred on your trip.
If your employer reimburses some or all of your travel costs in the above circumstances, you can only claim a tax deduction for the amounts you haven’t been reimbursed.
This can include not only the cost of getting to Canberra, but also any accommodation and reasonable meal costs you incur.
Similarly, if you need to travel from your usual place of work to a client’s premises, this expenditure is generally tax deductible.
If you would like more information on this topic or have another tax question e-mail me at tax.albury@crowehorwath.com.au.
