How to Protect Your Work Travel Deductions at Tax Time?

Many employees assume that travelling between two jobs automatically qualifies as a tax deduction. A recent 2026 decision from the Administrative Review Tribunal (ART) proves otherwise. The case of Hui v FCT [2026] ARTA 570 is a timely wake-up call for anyone claiming travel expenses at tax time.

The Travel Claim That Mostly Failed

Mr Hui worked as a pharmacist across two regional Queensland locations. He lived in Brisbane and travelled regularly to both workplaces. He claimed deductions for travel, car use, accommodation and meals. The ART disallowed nearly all of it.

The Tribunal rejected the claims on two grounds. First, his record keeping was inadequate for expenses that may otherwise have qualified. Second, and more significantly, his travel was classified as travelling to work — not travelling as part of work.

“Travelling to Work” vs “Travelling on Work” — Why It Matters

This distinction is at the heart of Australian travel deduction law. The Australian Taxation Office allows deductions for travel that forms part of your actual work duties. It does not allow deductions for travel that simply gets you to the place where those duties begin.

Even long, expensive interstate travel falls into the non-deductible category when it is about reaching your workplace. The fact that Mr Hui’s commute crossed hundreds of kilometres did not change its legal character. It was still a personal travel expense in the eyes of the law.

Travel between two workplaces can be deductible, but only in specific circumstances. The travel must be an essential and required part of your role. Think of a tradesperson moving between job sites throughout their working day. That kind of travel is integral to the job itself.

Mr Hui’s situation was different. He was rostered at separate locations on different days, he was not moving between sites as a required part of carrying out his duties and he was simply commuting to whichever location he was working at on a given day.

Poor Records Destroyed Otherwise Valid Travel Claims

Some of Mr Hui’s travel expenses may have been allowable had he kept proper records. The ART disallowed them purely because he could not substantiate them.

Australian tax law requires written evidence for work-related travel claims. For travel exceeding six consecutive nights away from home, a travel diary is mandatory. Receipts, invoices and records showing the work-related purpose of each expense are essential. Without these, even legitimate travel claims cannot succeed.

This is not a technicality. Substantiation is a legal requirement under Division 900 of the Income Tax Assessment Act 1997. Failing to keep records at the time of travel is one of the most avoidable reasons taxpayers lose deduction claims.

The One Win — Mobile Phone Travel Apps

The ART did allow a partial deduction for Mr Hui’s mobile phone expenses. He used specific apps on his phone to carry out his pharmacist duties. The Tribunal accepted that this usage directly connected to earning his income.

The deduction applied only to the work-related percentage of his phone costs. This is consistent with how the ATO treats mixed-use devices. Employees across many industries use mobile apps as part of their daily role. Those costs are deductible — provided you keep records of your work-related usage.

What This Means for Your Travel Deductions

This case carries clear lessons for any employee who travels for work. Living far from your workplace does not make your travel tax deductible. Working across multiple locations does not automatically create deductible travel either.

The test is always whether the travel itself is part of your income-earning duties. If you are travelling to start work, that cost is yours to bear personally. If you are travelling as part of performing your work, a deduction may be available — but only if you have the records to prove it.

Keep receipts. Maintain a travel diary. Record the work purpose of every trip at the time it occurs. These simple habits protect legitimate travel deductions from being disallowed at review.

Navigating travel deduction rules can be complex, especially when you work across multiple locations. Whether you need help reviewing your travel expense records, understanding what qualifies as a deductible travel expense, or preparing for an ATO audit, our team is ready to assist. Get in touch with the MaxGrowth team today

This article is for general information purposes only and does not constitute legal or taxation advice. Readers should seek independent professional advice regarding their specific circumstances.