---
title: Travel Allowances for Business Owners
description: If you are a business owner, there may be some advantages to you paying yourself a travel allowance instead of claiming the travel through your business.
---

[Bookkeeping Updates](https://www.allsorted.au/en/bookkeeping)

# [Travel Allowances for Business Owners](https://www.allsorted.au/en/bookkeeping/travel-allowances-for-business-owners)

 Written by [allsorted](https://www.allsorted.au/en/bookkeeping/author/allsorted) | 24 September 2023, 11:57:47 pm Z

If you are a business owner, are an employee of your business and travel for business, there may be some advantages to you paying yourself a travel allowance instead of claiming the actual travel costs through your business. [This Explainer](https://knowledge-base.allsorted.au/claiming-a-daily-travel-allowance?hsLang=en) outlines how travel allowances work and the possible benefits for business owners. However, some key points are listed below:

- The allowance that the business pays to the business owner IS tax deductible by your business
- The allowance that the business owner receives is NOT taxable
- The reasonable amounts (from the ATO) maybe greater than the actual travel expenses incurred. No tax invoices/receipts are required to be kept.
- If the travel is for more than 6 days, a travel diary, showing items such as dates travelled, appointments and places visited must be kept proving the business purpose of the travel.
- Any private travel must be excluded from the claim. For a small business, this means there needs to be a link between the travel expenses and the earning of business income.
- Follow up any meetings with clients, suppliers, etc with an email saying something like 'great to meet you' and a possible action item. This will help to confirm the business-related activity, if required in the future.
- You cannot claim the costs incurred by a spouse, unless they are substantially involved with the business and the travel must be relevant to the work the spouse does for the company.
- Fringe benefits tax may apply to the 'non-deductible' component of the travel.

If you do travel for business and feel that there may be a benefit in receiving a travel allowance, talk to your bookkeeper before you commence your travel.

 

 

[View full post](https://www.allsorted.au/en/bookkeeping/travel-allowances-for-business-owners)

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