Who can claim
This deduction is available to individuals and companies.
- The expense is incurred in carrying on an existing income-producing business.
- Any private, capital or non-income-producing component is reasonably apportioned or excluded.
- The travel is undertaken in the course of carrying on the business.
- Accommodation, meals and incidentals relate to business travel that requires you to sleep away from home overnight.
What you cannot claim
- Do not include private drawings or personal expenses.
- Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense.
- Private extensions, family costs and entertainment are excluded or apportioned.
How the amount is worked out
Claim the attributable business portion of eligible actual costs. A company or trust should keep diary or equivalent evidence needed to substantiate apportionment and must separately apply any employee fringe benefits tax rules.
Records the ATO expects
- Receipts kept for 5 years
- Itinerary
- Business purpose
- Travel diary for an individual away for 6 or more consecutive nights
- Fringe benefits tax records for employee travel where relevant
Where this rule comes from
Primary source: ATO travelling for business (ATO business-travel guidance accessed 30 July 2026). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO business income and deductions (Updated 1 June 2023)