Flight Centre Travel Group’s Corporate Traveller cautions bleisure travellers amid ATO crackdown

As July marks the start of tax season and the Australian Taxation Office (ATO) sharpens focus on work-related expenses[1], Corporate Traveller, in partnership with financial manager and tax agent Moneywise, is calling for ‘bleisure’ travellers, those who mix business with pleasure, to be extra vigilant during the 2023/2024 tax filing period.

Corporate Traveller, the flagship SME division of Flight Centre Travel Group (FCTG), believes the ATO’s focus will be particularly relevant for bleisure travellers, with flight bookings showing Australian business travellers now spend double the global average time on business trips, averaging six nights compared to the global average of just 3.5.[2]

In addition, Corporate Traveller’s flight bookings for FY24 reveal that January leads the year for bleisure travel, with travellers averaging 7.2 nights away. September follows, with an average of 6.5 nights away across all bookings. July is the third most popular month for bleisure travel, with an average of 6.2 nights away.

To help support Australian bleisure travellers claim the right expenses amid the latest advice from the ATO – particularly that any work-related expense must have a direct connection with the business earning an income – Corporate Traveller and FCTG’s Moneywise offer crucial guidance to business travellers.

A key tip from Moneywise Global General Manager John Tuohy is to hold off filing your taxes until you are fully prepared, otherwise you may risk being audited.

Mr Tuohy said in the area of tax regulations, especially for work travel deductions in the context of bleisure, there were five crucial insights business travellers need to know this year:

1. A holiday is not a work trip and, sadly, it’s not a tax deduction either – but if you’re blending work and leisure, keep a travel diary for those work expenses.

Bleisure travel is very popular with Australian travellers, and attending a conference and adding additional sightseeing is a good example of this trend.

2. Weekend accommodation can be deductible when business extends from Friday to Monday.

John adds that incidental and reasonable travel deductions can include Saturday and Sunday accommodation when necessary for business requirements on a Friday and the following Monday.

3. You can include legitimate client entertainment expenses – but only if the real purpose is business.

Tempted to take your client golfing while enjoying a bleisure trip? You can claim it, says Tuohy, but only if the purpose of the expense is income-generating business related.

4. You can’t claim day travel.

Even if it is interstate, the ATO will not give rise to a tax-deductible claim, he warns. Apart from work-related kilometre deductions in your personal vehicle, Tuohy adds that public transport, parking, tolls, taxi/rideshare, flights, meals and other incidental expenses that aren’t reimbursed by your employer, will only be tax deductible when they are associated with an overnight work trip. Again, he says, most employer arrangements will allow these as reasonable expense claims and you should only be lodging tax deduction claims for specific expenses which have not been reimbursed to you.

5. Don’t double dip on those travel work claims.

Tuohy says most out-of-pocket work expenses will indeed be reimbursed by your employer or the business, so avoid the temptation to ‘double dip’ and potentially attract ATO attention. However, when it comes to daily travel allowances (‘per diems’) and mileage travelled in your own car for work, make sure you do claim for your tax deduction entitlement. Employers will often code these as tax assessable allowances to the ATO and you do need to complete your tax return for actual expenses incurred using travel allowances, and lodge deductions for kilometres travelled for work in your own car.

ENDS

Corporate Traveller FY2024 flight booking data

Disclaimer: The advice given in this article is general in nature and not intended to influence readers’ decisions about financial products or specific personal tax considerations. Before making any financial decisions, readers should consider their own circumstances and seek advice from a registered tax agent or qualified financial adviser.

About Corporate Traveller

Corporate Traveller is an award-winning business travel management and solutions provider for SMEs, operating in six global markets. Established in 1993 as Flight Centre Travel Group’s first corporate brand, Corporate Traveller has offered its personalised service, expert tailored advice, dedicated travel consultants, and advanced booking technology to more than 6500 Australian business customers. Offering an all-in-one innovative booking platform with the support of a personal travel consultant, Corporate Traveller makes travel simpler, faster, and easier for businesses. With a wide range of solutions available, Corporate Traveller can cater for simple requirements through to the most complex SME business travel management needs. For more information or to book a business consultation, visit corporatetraveller.com.au

[1] https://www.mgisq.com.au/ato-focus-areas-2024/#:~:text=This%20year%2C%20the%20ATO%20is,lodgment%20right%20the%20first%20time.

[2] https://www.corporatetraveller.com.au/news/bleisure-boom-australian-business-travel-almost-doubles-global-average

[3] https://www.gbta.org/business-travel-industry-anticipates-a-strong-but-challenging-2024-according-to-latest-gbta-poll/

[4] https://www.corporatetraveller.com.au/news/fares-fall-australia-air-travel-returns-pre-covid-capacity