Overseas Travel Expenses

If you are travelling overseas on business — especially if you’re also taking a
holiday at the same time you need to keep detailed records.
If you are away on business but take a free half-day to enjoy exploring a new
city, the personal part of the trip is incidental. You can claim all your travel
expenses. However, if you are going on holiday but happen to meet up with
a couple of business contacts while you’re there, the business part of the trip
is incidental to the holiday. You can’t claim any of your travel expenses.

If you combine a business trip with a holiday, you must split out your
expenses and only claim the portion that relate to the working part of the trip.
The best way to do this is to keep an itinerary or diary. It should provide enough information to calculate all your costs and make a reasonable split between business and personal expenses.
As well as all the usual receipts for air fares, car hire, accommodation, meals, taxis, etc., you should also keep:
• details of the reason for the trip, firms visited and business conducted
• details of time out from the business itinerary for personal purposes
• business contacts/cards or letters of introduction

Overseas travel expenses don’t generally include GST and therefore GST cannot be claimed on expenses (including air fares).
The travel must be in relation to existing business and income earning activity of the taxpayer.