In 2026, many of the best transport deals are still done over a flat white. But just because a meeting is work-related doesn't mean it's tax-deductible. For Australian drivers, the distinction between "Business Expense" and "Entertainment" is one of the most common causes of audits.
This guide explains the 2026 rules for travel and business development expenses so you can stay in the ATO's good books.
The Australian tax rule is incredibly strict: Entertainment is not deductible. If you take a client out for lunch or coffee, the cost of that food and drink is seen as a "private benefit" and a form of entertainment. Even if you discuss an $80k project strategy throughout the entire meal, the bill is not claimable.
💡 Note: If you are traveling overnight for business, your own meals are deductible. But if you take a client out to dinner during that trip, the client's portion is still not deductible.
Your "Place of Work" is critical. Travel from home to your primary office or co-working space is Private Travel and cannot be claimed.
In 2026, most drivers use their own vehicle for some business trips. To claim a significant portion of your car expenses (fuel, insurance, rego, depreciation), you must keep a 12-week logbook. Without a logbook, you are limited to the "Cents per Kilometre" method, capped at 5,000km per year.
Fees for industry conferences are 100% deductible. In 2026, if a conference is overseas, the flights and accommodation are deductible, but you must keep a Travel Diary if the trip lasts more than 6 nights. This diary must record every business session attended to prove it wasn't just a holiday.
Our accountants help professional service firms build robust travel and expense policies. Ensure your consulting firm is maximizing its 2026 tax position.
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