Overseas business travel can offer legitimate tax deductions, but only if you meet strict criteria laid out by the Australian Taxation Office (ATO). Mixing business with leisure—such as bringing the family along or adding a few days of sightseeing—doesn’t necessarily void deductions, but it does introduce complexity. This guide covers what you can claim, when you need a travel diary, substantiation requirements, family travel considerations, and how to apportion costs between business and private purposes.
Is Overseas Travel Tax Deductible?
Travel expenses are deductible when the primary purpose of the trip is to earn assessable income. Examples include:
- Attending conferences
- Meeting international clients
- Conducting research
- Undertaking work-related training
However, if the dominant purpose of the trip is personal (e.g., a holiday), you cannot claim any deductions, even if business activities occur incidentally.
What Expenses Are Deductible?
You may be able to claim deductions for:
- Airfares (fully or apportioned)
- Airport transfers and taxis
- Business-related accommodation
- Meals while travelling for business
- Incidentals (phone, internet, laundry)
- Conference or seminar fees
- Business-related travel insurance
Family Members Travelling With You
You cannot claim expenses for family members unless they are also working in the business, and the travel is work-related for them. And note that the ATO considers that if you have family traveling with you, the trip might not be predominantly for business purposes. If the trip is primarily for business travel, here are some example of apportionment.
- If a hotel room would cost the same regardless of family joining, you may claim 100%
- If you upgrade for family needs, only claim the business-equivalent cost or the pre upgrade cost
- Do not claim family member airfares or meals
Travel Diary Requirements
A travel diary is mandatory for overseas trips lasting six or more consecutive nights.
Diary entries must include:
- Date
- Time
- Location
- Nature of the business activity
Maintain complete and accurate records.
What Counts as a Business Day?
If more than 50% of the working day is spent on business, the day is deductible.
Examples:
- Conference from 9:00am to 3:00pm: Claim the day
- One-hour meeting with rest of the day sightseeing: Cannot claim
Airfare Deductibility
Airfare is fully deductible only if the primary purpose of the trip is business.
- If business dominates (e.g., 9 of 14 days), full airfare may be claimed
- If business is incidental or 50/50, apportion based on business vs private days
How to Apportion Travel Costs
Apportion costs based on the number of business vs private days:
- Airfare: Apportion unless private time is incidental
- Accommodation: Claim only business nights
- Meals and incidentals: Claim only on business days
Substantiation Requirements
To support your deduction, keep:
- Receipts and invoices
- Travel itineraries and confirmations
- Conference schedules and agendas
- Meeting notes
- A travel diary (if applicable)
Common Pitfalls to Avoid
- Claiming the full cost of a mostly personal trip
- Failing to keep a travel diary (6+ nights)
- Including family costs
- Not apportioning between private and business
- Making vague, unsubstantiated claims
Summary Table
| Item | Deductible? | Notes |
| Airfare | ✅ / ⚠️ | Fully deductible if mostly business. Apportion if not. |
| Accommodation | ✅ / ⚠️ | Business nights only. Apportion if shared. |
| Meals & incidentals | ✅ | Business days only. |
| Family travel | ❌ | Not deductible unless work-related for them. |
| Travel diary | ✅ Required | For 6+ nights overseas. |
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