Work-Related Transport Expenses Deductions for 2023
If you are an employee who travels for work, you might be thinking what kind of transport expenses you can claim on your tax return. Well, the good news is that there are some deductions you can make for using your car, public transport, or even flying to different locations. But before you get too excited, there are also some rules and limitations you need to be aware of. Let's take a look at them.
The difference between work-related car expenses and work-related travel expenses:
Car expenses are for using a car that you own, lease, or hire under a hire-purchase agreement.
Travel expenses are for using other modes of transport, such as flights, trains, buses, taxis, ride shares, and tolls.
There are different areas of the Gotax Tax Return for you to claim these: car expenses and travel expenses.
You definitely need to make sure that the transport expenses are directly related to earning your income. This means that you can only claim them if you travel in the course of performing your job as an employee. For example, you can claim them if you travel from one work site to another, or if you have to carry bulky tools or equipment that your employer requires you to use. You can also claim them if you have to travel overnight for work purposes and stay away from your home.
However, you cannot claim them if the travel is private or domestic in nature.
For example, you cannot claim them if you travel between your home and your regular workplace, unless you have shifting places of work or itinerant work. You also cannot claim them if you travel for personal reasons, such as visiting friends or family, or going on a holiday.
And, you need to keep records to prove your transport expenses. Depending on the method you use to calculate your car expenses, you may need to keep receipts, invoices, logbooks, and odometer records. For other travel expenses, you may need to keep receipts, invoices, boarding passes, tickets, and travel diaries. You should also keep a record of the dates and reasons for your travel.
So there you have it: a brief overview of the deductions for work-related transport expenses for 2023. Of course, this is not a comprehensive guide and there may be other factors that affect your eligibility and amount of deductions. If you're unsure about anything or need more advice, it's always a good idea to consult Gotax. They can help you maximise your deductions and minimise your tax liability.
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