Travel Between Workplaces: The Rules You Need to Know
Understanding when your commute becomes a tax deduction
Think your daily drive to work is just dead money? For most Australians, the commute from home to the office is exactly that: a personal expense the ATO will never let you claim. But here is what most taxpayers miss: the moment you step into your car after arriving at that first workplace, the rules change completely. If you have multiple work locations, attend client sites, or travel between jobs during the day, you could be sitting on thousands of dollars in unclaimed deductions.
The ATO's rules on work-related travel are surprisingly nuanced, and the myths surrounding them cost Australian taxpayers millions each year. Some people claim too much and face audits. Others claim nothing, afraid of making a mistake. Both approaches are wrong.
In this myth-busting guide, we will separate fact from fiction about travel deductions, explain exactly when your travel becomes claimable, and show you how to maximise your legitimate claims without raising red flags.
Myth 1: "All Travel to Work is Non-Deductible"
The Myth
Many Australians believe that any travel involving going to work cannot be claimed. They have heard the rule about home-to-work travel being private, so they assume every work-related trip falls into this category.
The Reality
The ATO distinguishes between commuting and work-related travel. Your regular journey from home to your usual workplace is indeed private and non-deductible. But travel between workplaces during the day is a completely different matter.
Deductible work travel includes:
- Travelling from one work location to another (for example, from your main office to a client site)
- Travelling directly to a work location that is not your regular workplace (for example, a nurse going directly from home to a different hospital)
- Travelling from your home to a work location for irregular or itinerant work
- Carrying bulky tools or equipment that cannot be stored at work
What to Do Instead
Map out your typical work travel patterns. If you ever travel between work locations, visit client sites, or work from multiple locations, you likely have claimable travel. Start keeping records of these trips, including dates, destinations, and kilometres travelled.
Myth 2: "I Can Claim My Commute If I Stop at the Post Office on the Way"
The Myth
A surprisingly common belief is that making a work-related stop during your commute converts the entire journey into a deductible expense. Drop off a parcel for the boss? The whole trip becomes claimable.
The Reality
This is completely incorrect and has led to many audit adjustments. The ATO looks at the substantial character of the journey. A minor deviation for work purposes does not transform a private commute into work-related travel.
The test is this: what was the primary purpose of the journey? If you were travelling from home to your regular workplace and made a brief work stop along the way, the journey remains substantially private. However, if you made a significant detour specifically for work purposes, you may be able to claim that additional portion.
Example: Rachel drives 25km from home to her office. On the way, she drops off documents at a client located 2km off her usual route. The 23km direct route remains non-deductible. She can only claim the additional 4km detour (2km each way to the client and back to her route).
What to Do Instead
Only claim the additional kilometres that represent genuine work-related travel. Keep a record of your normal commute distance and any work-related detours. The ATO will not accept claims for your entire commute just because you made a quick work stop.
Myth 3: "Home-Based Businesses Can Always Claim Travel to Client Sites"
The Myth
People who run businesses from home or work remotely often assume that any travel from their home office to see clients or attend meetings is fully deductible. After all, home is where they work, so travel from home must be work travel.
The Reality
The ATO has specific rules about this. Your home only becomes your "base of operations" for travel purposes if it genuinely functions as your principal place of business. Working from home occasionally does not automatically make your home a workplace for travel deduction purposes.
Key factors the ATO considers:
- Do you have a dedicated home office set up for your work?
- Does your employer require you to work from home?
- Do you store work equipment or materials at home that you need to transport?
- Is your home legitimately your base of operations, or do you also have an employer-provided workplace?
If you have a regular office provided by your employer but choose to work from home some days, travel from home to client sites on those days is generally treated the same as commuting: non-deductible for the portion that represents your normal commute to the office.
What to Do Instead
Establish whether your home genuinely qualifies as your base of operations. If you are an employee with access to an employer-provided workplace, be cautious about claiming travel from home. If you are self-employed and your home is your only place of business, your position is stronger. Document your work arrangements and be prepared to justify your claims.
Myth 4: "Itinerant Workers Can Claim All Their Travel"
The Myth
Tradespeople, sales representatives, and others who work at multiple locations throughout the day assume they can claim every kilometre from the moment they leave home until they return.
The Reality
The itinerant worker rules are more specific than many people realise. To qualify as an itinerant worker, your work must involve regular travel from place to place as a fundamental part of your employment duties, not just occasionally visiting different sites.
True itinerant workers who can claim home-to-first-workplace travel include:
- Tradespeople who go to different job sites daily
- Delivery drivers with no fixed base
- Home healthcare workers visiting patients at their homes
- Sales representatives with territories rather than offices
Even genuine itinerant workers cannot claim travel that is essentially commuting. If a plumber always starts at the same depot each morning to collect supplies, the travel from home to that depot is ordinary commuting.
What to Do Instead
Assess whether you genuinely qualify as an itinerant worker under ATO guidelines. Look at your employment contract and actual working patterns. If you have a regular starting point you report to most days, you may not qualify. If you genuinely start work at different locations each day as required by your job, you are more likely to have a valid claim.
Myth 5: "Carrying a Laptop Makes My Commute Deductible"
The Myth
The "bulky tools" exception is one of the most misunderstood rules in tax. Many workers believe that carrying work items like laptops, work bags, or documents during their commute converts the journey into deductible work travel.
The Reality
The bulky tools exception is extremely narrow. It applies when you are required to carry bulky or heavy equipment that cannot reasonably be left at work. A laptop, briefcase, or even a small toolbox does not qualify.
Items that typically qualify:
- Large musical instruments (cello, double bass)
- Large power tools that must travel between sites
- Bulky sporting equipment for sports professionals
- Large amounts of stock that cannot be stored at work
Items that do not qualify:
- Laptops, tablets, or phones
- Briefcases or work bags
- Standard hand tools
- Documents or files
The test is whether there is no secure storage available at your workplace and the items are genuinely bulky or heavy.
What to Do Instead
Do not rely on the bulky tools exception unless you genuinely meet the criteria. Most workers who claim travel under this rule do so incorrectly. If you believe you qualify, document why the equipment cannot be stored at work and why you are required to transport it.
The Truth Summary: When Work Travel is Deductible
After debunking these myths, here is a clear summary of when you can claim work-related travel:
- Always deductible: Travel between two separate workplaces during the day
- Usually deductible: Travel from your regular workplace to an alternative work location (client site, meeting venue)
- Sometimes deductible: Travel from home if you are a genuine itinerant worker or your home is your legitimate base of operations
- Rarely deductible: Travel from home involving bulky tools (strict requirements)
- Never deductible: Regular commuting from home to your usual workplace
The current rate for claiming car travel is 85 cents per kilometre using the cents-per-kilometre method (capped at 5,000 business kilometres). Alternatively, the logbook method lets you claim the business percentage of actual running costs.
Expert Insights: Maximising Legitimate Travel Claims
"The key to travel deductions is understanding where your work actually begins. For most employees, work begins when they arrive at their workplace. For itinerant workers and those with genuine home offices, work may begin the moment they step out their front door. Knowing which category you fall into determines your entire approach to travel claims."
- Emma Thompson, Small Business Tax Expert at TaxBot
The ATO has indicated that work-related travel claims are a compliance focus area. They use data matching to compare your claims against others in your occupation and location. Claims that seem excessive for your job type will attract scrutiny.
Keep detailed records including:
- A logbook for the first 12 weeks to establish your business-use percentage
- Dates, destinations, and purposes of all work trips
- Odometer readings at the start and end of the financial year
- Receipts for all vehicle expenses if using the logbook method
How TaxBot Keeps Your Travel Claims Compliant
- GPS Trip Tracking: TaxBot automatically logs your trips and identifies which are potentially deductible based on your work patterns
- Intelligent Classification: Our AI learns your regular commute and separates it from legitimate work travel
- Logbook Generator: Complete your 12-week logbook requirement with automatic tracking
- Kilometre Calculator: Instantly see your deduction using both cents-per-km and logbook methods
- ATO Benchmark Alerts: Get warned if your travel claims seem high for your occupation
TaxBot users claim an average of $2,800 more in travel deductions than those who manually track their trips, without increasing audit risk because every claim is properly documented.
Take Action Today
Stop guessing about what travel you can claim. Download TaxBot and start tracking your work trips automatically. Our app will tell you exactly which journeys are deductible and ensure you have the records to back up every claim.
The difference between a compliant travel claim and a rejected one is documentation. Let TaxBot handle the paperwork while you focus on your work.