The ATO has confirmed that the costs of travelling to have a tax return prepared by a “recognised tax adviser” like Mark Your Tax Accountant are deductible. In particular you can claim a deduction for the cost of managing your tax affairs. However, apportionment may be required to the extent that the travel relates to another non-incidental purpose.
Example – Full travel expenses deductible
Maisie and John, who are partners in a sheep station business located near Broken Hill, travel to visit their tax accountant on the Sunshine Coast for the sole purpose of meeting with their tax agent to finalise the preparation of their partnership tax return. They stay overnight at a hotel, meet with their tax agent, Mark Your Tax Accountant, the next day and fly back to Broken Hill that night. The full cost of the trip, including taxi fares, meals and accommodation, is deductible.
Example – Apportionment required
Julian is a sole trader who carries on an art gallery business in Sydney. He travels to Maroochydore for two days to do some surfing and to meet his tax agent Mark Your Tax Accountant to prepare his tax return, staying one night at a hotel. Because the travel was undertaken equally for the preparation of his tax return and a private purpose, Julian must reasonably apportion these costs. In the circumstances, it is reasonable that half of the total costs of travelling to Hobart, accommodation, meals, and any other incidental costs are deductible.
Although the ATO directly considers the treatment of travel costs associated with the preparation of an income tax return, the analysis should also apply where you are travelling to see me in relation to the preparation of a BAS, business structure advice or another tax related matter.