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A Guide to Claiming Your Work-Related Travel Expenses

Whether you’re a business owner or an employee, you’re required to settle your taxes yearly to avoid accumulating debt. Regardless of the nature of your business, paying taxes always plays a huge part in its success, which is why knowing the particulars of what to pay and what can be deducted will ensure your business thrives. A Gold Coast accountant can help manage your finances better and avoid missing out on your dues.

Suppose you’re using a company-loaned vehicle to get to work, attend meetings, and go on business trips. In that case, you are authorised by the Australian Taxation Office (ATO) for a tax refund. You can only make your claim as long as you file your excursion under the category “work-related car expenses.”

What can Be Classified as Work-Related?

Before you file for a tax claim, you first need to give an estimate of the part of your recent business trip that can be considered as work. Take note that any private travel that took place between your house to your office is not part of your work-related expenses.

Besides that, you can only consider the same travel route as work-related if you’re bringing along equipment that you’ll be using for work. If you plan to do your tasks in a remote setting, you can also claim your car expenses, given that you’re assigned to be there.

How to Compute Travel Claims

Using the Cents Per Kilometre Method

As stated on the Tax and Superannuation Laws Amendment Bill, the cents per kilometre method requires you to multiply the fixed rate of 66 cents by the total business kilometres you achieved. If it’s applicable, it can reach up to 5,000 kilometres.

If you exceed 5,000 kilometres in one year, your tax refund claim can only be denounced to the 5,000 kilometres for the car you’re using. With this method, you aren’t required to provide written evidence for the kilometres you covered, unless specifically requested for by the ATO.

Using the Logbook Method

If you own the car you’re using for work, using a logbook method is more beneficial. It will give you the right to claim the maximum amount of your car expenses by subtracting it based on the business-use percentage of your vehicle.

To evaluate the business percentage, you must divide the total business kilometres you went on by the kilometres you travelled by car throughout the period of your trip. Each vehicle you use for work purposes should have its separate logbook that will be valid for up to five years.

How to Manage a Logbook (for The Logbook Method)

To have a better chance of getting your tax claim approved using the logbook method, you will need to write down all your work trips that will take place within three months. You must record the date of your travel as well as the odometer readings of your car when you began and ended your journey, to prove the actual distance your vehicle has been on.

You are also expected to include the total amount of kilometres you travelled during your business trip. For each course you take, it’s necessary to provide a short description of the reason behind your excursion to serve as supporting evidence for the ATO.


Whether you choose to calculate your travel expenses by using the cents per kilometre method or the logbook method, it’s essential to always have a copy of your car registration, insurance, and any maintenance services for the next five years. It will act as your supporting documents during your filing for a tax claim. Relying on a taxation accountant in Australia can help take care of your work-related car expenses and relieve you from the stress of keeping track of your business trips.

Are you looking for online accountants in Australia to help you handle your work-related travel expenses? The ECommerce Accountant is made up of business advisors dedicated to assisting online stores and digital influencers with maintaining their finances more efficiently. Get in touch with us today to book a free strategy session!

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