Are you planning to attend an overseas conference and unsure which expenses might be tax deductible? Correctly claiming your travel expenses — from airfares and accommodation to meals — can significantly affect your tax obligations.
Our trusted advisors are here to help you understand the basics of claiming tax deductions for overseas conference attendance. Make sure you're well-informed when it comes time to complete your tax return.
For professionals heading abroad solely for work-related conference participation, claiming deductions is relatively straightforward. Eligible expenses include:
However, deductions become more complex if the trip includes personal elements, such as family joining you or extending your stay for leisure. In such cases, only expenses directly related to the conference are deductible.
Travel expenses incurred for your partner or spouse are generally not deductible, however, special rules may apply depending on your circumstances. If you have been accompanied by your partner or spouse, the Commissioner has accepted the following methods to calculate non-deductible costs:
For example, a full deduction for hotel room accommodation would usually be allowable where your partner stays with you if it would have cost you the same amount even if they hadn't. However, your partner’s airfares may not be deductible unless they also attended the conference in connection to their professional income.
The ATO specifies that if the primary purpose of the trip is work-related, with personal activities being incidental, travel costs like airfares can be claimed in full. If private inclusions extend your travel, however, the deductible amount of your airfare costs correlates to the percentage of conference-related days during the trip. Conversely, if the trip is mainly for leisure with the conference being a minor component, none of the travel costs are deductible.
When it comes to accommodation and meals, deductions are allowed for the portion of the stay and meals directly associated with the conference. For example, if you're at a hotel for eight nights but only six are for the conference, you can claim the room fees and related meal expenses for six of the days.
For employees receiving an overseas travel allowance, the ATO provides guidelines on "reasonable amounts" for deductions without needing to keep detailed documentation. These amounts depend on your salary, travel destination, and sometimes occupation. However, actual expenditures exceeding these amounts require thorough recording, such as keeping all receipts. This only applies to employees, though, not sole traders and business operators.
For sole traders and business operators, it's crucial to keep comprehensive records, including invoices and receipts for all expenses, and to maintain a travel diary if your work-related travel exceeds six consecutive nights. This documentation supports the work-related portion of your trip and substantiates your deductions.
Navigating tax deductions for overseas conference attendance involves understanding which expenses directly relate to your professional development and ensuring you keep proper records for claims. By focusing on the primary purpose of your travel and maintaining accurate documentation, you can maximise your tax deductions within ATO guidelines.
Unsure what else you can claim at tax time? Check out our Tax Deduction Guide for a comprehensive list.
Looking to take the guesswork out of your deductions and Tax Return? Speak to our team today for trusted advice.