TAX ALERT - TRAVEL EXPENSES BEING TARGETED BY THE AUSTRALIAN TAXATION OFFICE

Lowe Lippmann Chartered Accountants

The Government has recently made various announcements in relation to denying or restricting tax deductions in relation to travel expenses incurred by taxpayers.

Firstly, the Treasury has released draft legislation in relation to denying tax deductions for travel expensesn relating to inspecting, maintaining or collecting rent for a residential rental property.

The draft legislation is effective from 1 July 2017 and designed to apply to certain taxpayers only. the guidance released from the Treasury includes various examples to explain which travel expenses may be denied a tax deduction, however, some consider the examples do not cover all components of travel expenses and create uncertainty for taxpayers.

Secondly, the Australian Taxation Office (ATO) recently released Draft TR 2017/D6: Income tax and fringe benefits tax: when are deductions allowed for employees travel expenses?

The draft ruling consolidates and updates a number of former ATO guidance documents. It sets out the ATO's interpretations on the general principles for determining whether an employee's travel and accommodation would otherwise be deductible for income tax and FBT purposes.

< Older Post

Newer Post >

Tax Alert - Division 296 draft legislation introduced to Parliament

February 16, 2026

Division 296 draft legislation introduced to Parliament Last week the revised Division 296 draft legislation was introduced into Parliament, and some technical amendments have been made after the exposure draft consultation phase. We will explain some particular areas of concern and re-consider some questions we had raised in earlier Tax Alerts on this topic. This draft legislation has been progressing at a rapid pace, and it appears the Government wants to get this legislation finalised as soon as possible, with these Division 296 rules set to apply from 1 July 2026.

Tax Alert - Transfer Balance Cap indexation & Superannuation changes

February 5, 2026

Transfer Balance Cap indexation & Superannuation changes Following the recent release of the December 2025 quarterly CPI figures by the Australian Bureau of Statistics’, the general transfer balance cap ( TBC ) will increase from $2 million to $2.1 million from 1 July 2026. This is applicable for superannuation fund members considering starting their first retirement phase income stream in 2026–27. This could provide tax effective retirement pension and non-concessional contribution opportunities for some members. The Australian Taxation Office needs to formally confirm this increase.

Practice Update – January & February 2026

February 2, 2026

Mandating cash acceptance The Government recently announced that it was delivering on its commitment "to mandate cash acceptance for essential purchases by finalising regulations that require fuel and grocery retailers to accept cash from 1 January 2026." The changes mean that, from 1 January 2026 , most food and grocery retailers must accept cash for in-person transactions of $500 or less between 7am and 9pm. Small businesses with aggregate annual turnover under $10 million are generally exempted from this mandate. However, this mandate still applies to small businesses that choose to share a trademark with a large retailer. The Government noted that, in addition to the cash mandate for fuel and groceries, consumers also already have the option to pay their bills, including utilities, phone bills and council rates, in cash at their local Australia Post outlet through Post Billpay. The Government will review this mandate after three years, to ensure it is functioning as intended. We prepared a Special Topic article within our Practice Update - December 2025, if you want to read more on this topic – click here .