Pay Less Tax While Traveling

Do you love to travel, have a cheeky drink, and pay fewer taxes?

There is a specific circumstance where the ATO will allow a tax deduction for alcohol consumption, but you do need to meet specific criteria.

Firstly, the travel you’re on needs to be for business purposes.

Make sure you’re travelling for business or doing some business-related activities while you’re travelling.

Secondly, the travel needs to be overnight.

Just a day trip out of your local area will not cut it. It has to be overnight travel.

Thirdly, the alcohol or the drink you are having has to accompany a meal and the same meal from the same place. For example, eating at a cafe or restaurant and ordering wine or a beer to accompany your meal.

However, if you buy alcohol from the local bottle store and bring it back to your hotel to have a drink, that’s not going to work.

Fourthly, as always, keep good records. The ATO will want to see that you travelled for a business purpose, that it was for overnight consumption and that it did accompany a meal.

So keep your receipts and maintain a sound diary of your actions.

If this sounds like something you would like assistance with or want further information, click here to book a call

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