I undertook business travel from Brisbane to Sydney for workshops, meetings and a conference. Initially I was travelling twice. In week 1 for 4 nights for meetings and workshops and then in the following week travelling again for 2 nights for a conference. I elected that rather than fly back between business commitments, I would stay on for the 4 days in between and undertake personal travel for those 4 nights at my own expense with my family flying down and joining me, again at my expense. As a consequence, because my flight down and my flight back are more than 5 days apart (flights were paid for by my employer) they are suggesting I need to complete a travel diary as if it was a single period of business travel. I am concerned about potential implications if this is assessed as one period of travel and FBT is levied then that will have implications to my personal income tax assessment. Is this risk real?
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Hi @Beefa,
Your concern about FBT is understandable. Where an employer pays for flights that include both work and private travel, the treatment depends on what the employer paid for and the purpose of each period, not simply the flight dates.
In your case, there were two distinct work periods (meetings/workshops and a conference). Staying in Sydney between them for private reasons doesn’t, by itself, turn the whole trip into a single work trip.
A travel diary is required for FBT purposes where you’re away from home for more than 5 consecutive nights, including any private days. This is purely a record‑keeping requirement – it doesn’t change private days into business travel. Because your total continuous absence exceeded 5 nights, it’s reasonable for your employer to request one.
From an FBT perspective, there wouldn’t be an FBT liability on the flights where:
the flights were genuinely for work, and
you paid for the private accommodation, meals and any family travel.
FBT focuses on what benefit the employer provided. An accurate travel diary supports the correct separation of work and private travel and helps manage FBT risk – it doesn’t create an issue itself.