Business travellers who combine work with leisure, often referred to as “bleisure” travellers, are facing increased scrutiny from the Australian Taxation Office (ATO) as it cracks down on work-related expense claims. Industry experts have highlighted this as a key focus area for the ATO this tax season. According to data from Flight Centre’s Corporate Traveller division, Australian business trips average six nights, compared to the global average of 3.5 nights, indicating a trend towards extended travel that mixes business with pleasure.
Tom Walley, Global Managing Director at Flight Centre, has advised business travellers to exercise caution this tax season to avoid attracting attention from the ATO. He noted that the trend of combining business trips with personal leisure time is expected to rise due to lower flight costs and strong travel trends.
In May, the ATO identified work-related expenses as one of three main focus areas for this tax season, alongside rental deductions and the inclusion of all income sources in tax lodgments. Last year, over 8 million Australians made work-related claims. The ATO has urged taxpayers to adhere to three key guidelines: only claim expenses if they were personally incurred and not reimbursed, ensure the expense directly relates to earning income, and maintain records of all expenses.
John Tuohy, General Manager of Moneywise Global, recommends that travellers delay filing their taxes until they have all necessary documentation and are fully prepared. With over 14,000 pages of tax law in Australia, he stressed the importance of understanding the specifics to avoid triggering an audit, especially given the ATO’s heightened focus on work-related expenses this year. He advises against rushing the process unless taxpayers have simple tax affairs and are expecting a refund. The deadline for filing tax returns is October 31, or mid-May for those registered with a tax agent.
For “bleisure” travellers, Tuohy offered specific advice to ensure compliance when claiming work-related deductions. He recommends keeping detailed travel diaries for work expenses and avoiding “double dipping” on claims. If leisure activities are incidental to a business trip, more expenses, such as accommodation and meals, could be considered deductible. Legitimate client entertainment expenses and weekend accommodations are also deductible when business extends over a weekend. However, costs associated with taking family on trips or extending travel for personal leisure before or after work commitments are not deductible and should not be claimed.
Tuohy also clarified that day travel expenses are generally not deductible. Only expenses related to overnight work trips, such as public transport, parking, tolls, taxi or rideshare fees, flights, meals, and other incidental expenses that are not reimbursed by the employer, qualify for tax deductions.
By following these guidelines, business travellers can ensure their tax claims are compliant, minimising the risk of audits and penalties from the ATO.
