Are Holidays Tax Deductible?

When you are traveling for business, you are away for least one night for business purposes. There is a clear distinction between traveling for business and private travel for ‘for leisure purposes’ or even commuting between one’s home and workplace.

If there is a direct connection between your employment and the business travel, such as visiting customers or suppliers, meetings at other company locations, professional development and attending of seminars, and even networking, you can claim deduction for the travel expenses.
But when any part of the travel is for the purpose of private purposes, such as a holiday, the expenses claimed will have to be apportioned. This is accomplished by calculating the number of days in the trip was in relation to business purposes, and also the number of days that was in relation to private purposes. Days considered business purpose include:

• Travel days
• Weekends which are between two business days
• Days where more than 50% of the time was spent on business activities

Thus, for example, if you are traveling to North Sydney from South Bank for business, and you can use the company car for family travel. The trip will still be considered as business travel, and the motor vehicle expenses fully deductible.

You can also attend conferences interstate and overseas. For example, traveling to Chatswood from Brisbane, or even to Honolulu from Sydney.

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