Announcement posted by Invigorate PR 27 Feb 2025
With more professionals eager to mix business with travel, the question arises: can you claim your overseas trip on tax if you attend a business event or conference? The Australian Taxation Office (ATO) has strict rules and CPA Coco Hou, CEO of Platinum Accounting Australia, is setting the record straight.
The ATO is particularly stringent when it comes to claiming business-related travel expenses and the onus is on taxpayers to prove that their travel was primarily for work.
"Many business owners assume they can claim an entire trip simply because they attended a conference," Hou said.
"In fact, many people book a conference and then build an entire holiday around it thinking they can claim the whole adventure as a tax write off.
"The ATO is on to this. It expects clear documentation proving that the trip was for business purposes and not a disguised holiday. You would be surprised some of the things business people try and claim. You would be surprised the type of analytics and data matching the ATO is able to draw on to pick up bogus or inflated travel claims."
What you can claim
If your overseas trip is primarily for business, certain expenses may be tax-deductible including:
- Airfares and transport costs directly related to business activities,
- Accommodation for business-related stays,
- Conference or seminar registration fees,
- Meals and incidental expenses during the business portion of the trip; and
- Travel expenses required for meetings with clients, suppliers or partners.
"The ATO requires detailed records, including itineraries, receipts and proof of business engagements. So it is very important to ensure you take a travel diary with you and capture all of the movements and expenses with detailed information," Hou said.
"This will ensure you are keeping an accurate record of your movements and expenses."
Clothes and other costs
"Accidents happen when you are traveling. We get it but if you forget a suit or your shoe breaks, it's not claimable. Clothing is considered a private expense. But if it's something like safety gear that's required for work such as steel-capped boots for a trade event, that could be deductible," Hou said.
"If you are dining out, meals can be deductible if they're part of a business-related event, like a networking dinner or a client meeting. But if it's just a personal meal while traveling, it is not deductible.
"When it comes to transport between events, if you are taking a taxi or rideshare to get to a conference, seminar, or business meeting, that's fine to claim. But if you're heading out for sightseeing or personal stuff, that's on you.
"If you rack up overseas phone or internet charges purely for work while you are traveling that is deductible. But if it's mixed with personal use, you will need to carefully apportion it accordingly."
What you can't claim
Certain expenses are not deductible, including:
- The personal portion of any trip, ie sightseeing, extended stays for leisure,
- Expenses for family members or non-business companions,
- Extravagant or unnecessary expenses, such as luxury entertainment or shopping; and
- Any travel not directly related to business purposes.
"If your trip involves both business and leisure, you can only claim the portion directly related to work," Coco explained.
"For example, if you attend a three-day conference but stay for two extra weeks on holiday, those additional days are not deductible."
Avoiding red flags with the ATO
The ATO pays close attention to overseas travel deductions, so maintaining accurate records is crucial. Coco Hou advises business owners to:
- Keep detailed receipts and records of all expenses,
- Maintain a travel diary to document business-related activities,
- Ensure business activities are legitimate and not just incidental to a holiday; and
- Seek professional advice if unsure.
"Claiming an overseas business trip on tax can be legitimate, but only if it meets ATO requirements," Coco added.
"The best approach is to be honest, keep records and ensure that business is the main purpose of your travel."
About Platinum Accounting Australia
Platinum Accounting Australia is a leading national accounting firm that has been operating in Australia since 2008. With a national footprint, the business offers a broad range of services for individuals and businesses of all sizes including tax planning, accounting, advisory and bookkeeping. Platinum Accounting Australia also offers a highly popular and growing licensee program for bookkeepers and accountants to assist them to grow as part of a respected national network.
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