Can You Claim Parking on Tax?

Can You Claim Parking on Tax?

Parking metre in Sydney, Australia

Can you claim parking on tax? Yes, if it is an expense directly related to your work, you have proof of the expense, and you were not reimbursed for your parking costs

In this guide, our tax agents with over 35 years’ combined experience hav cover when you can claim, how much you can claim for parking on your tax return, and the difference between a claimable and non-claimable parking expense.

Key Takeaways

  • You can claim parking on tax if it is an expense directly related to your work, you have proof of the expense, and you were not reimbursed for your parking costs
  • You cannot claim a deduction for the cost of parking at your regular workplace
  • You cannot claim toll expenses incurred during your drive from your home to your regular workplace
  • Speeding tickets or parking fines you incur during work-related travel cannot be claimed on your tax return
  • There is no limit on claiming work-related parking fees that meet the eligibility criteria
  • You can claim work-related airport parking fees or hospital parking fees on your tax return in Australia if the fees meet certain criteria
  • You cannot claim a parking fine on tax, regardless of whether it was received during work hours.

When Can You Claim Parking on Tax?

To claim parking expenses on your return, here are some rules to remember:

  • You must pay for the expense yourself
  • You cannot be reimbursed for the parking costs
  • The expense must be directly related to you earning income and be incurred during work-related travel
  • The expenses cannot be related to parking fees for your regular place of work or toll costs from travelling to and from work
  • You must have documentation (receipts or records) to prove the expenses

Examples

Visiting a Supplier

If you use your personal vehicle to visit a supplier to pick up an order for your work and have to pay a parking fee outside the supplier’s building, and your employer did not reimburse you for this expense, you can claim this parking fee as a deduction on your tax return, provided you saved the receipt.

Attending a Work-Related Conference or Training Session

If you attend a conference in a different city as part of your job, drive to the conference venue, and pay for parking, you can claim this parking fee as a deduction since it is incurred as part of your work-related travel and you have not been reimbursed.

Visiting Multiple Client Sites in a Single Day

If you visit several clients in a day and incur parking fees at each client’s location, you can claim these expenses on your tax return because they are directly related to your work and you have not been reimbursed.

Travel for Temporary Assignments

If you are temporarily assigned to a different office location for a few months, drive to the temporary office, and incur parking fees, you can claim these parking fees on your tax return since this is not your regular place of work and the expense is work-related.

Delivering Goods or Services

If you use your vehicle to visit various job sites throughout the day and pay for parking at each location where you provide services, you can claim these parking fees as they are directly related to your income-earning activities and are not reimbursed by your clients.

What Parking Expenses Can You Not Claim?

You cannot claim parking expenses related to parking at your regular place of work. You also cannot claim toll expenses when driving between your home and regular place of work.

Parking at Your Regular Place of Work

If you drive to your office every day and park in the building’s car park or a nearby parking facility, these parking fees are considered private expenses and cannot be claimed as they relate to your regular place of work.

Daily Commute Parking

If you drive to a suburban train station every morning, park your car, and then take the train to your office in the city, the parking fees at the train station are considered part of your daily commute and are not deductible.

Parking for Secondary Employment

If you work two jobs, one during the day and another in the evening, and you park your car near your evening job location, which is your secondary place of work, the parking fees incurred here are not deductible as they relate to commuting.

Residential Area Parking

If you work from home but occasionally drive to meet clients, and you park your car in a residential area near your home before taking public transport to your client meetings, you cannot claim these parking fees.

Parking for Personal Errands During Work Hours

If you drive your car to run personal errands during your lunch break from your regular place of work, and you pay for parking while doing these errands, these parking fees are not related to your work and are not deductible.

Parking at Your Home Office

If you run a business from your home and have converted your garage into an office, and you park your car on the street in front of your home, parking fees incurred in this scenario are not deductible since they are associated with your residence.

How Much Parking Can You Claim on Tax?

The ATO does not have a set limit for how much parking you can claim on tax for work-related parking costs.

If parking fees are directly related to your work and you are not reimbursed for the expenses, you are eligible to claim the full amount.

Remember, to claim parking expenses on your tax return, you need acceptable documentation to prove your claim.  

How to Claim Parking on Tax

Once you confirm a parking cost is claimable, you need to be sure:

  • You spent your own money
  • You were not reimbursed for the parking fee or expense
  • You have a receipt or proof to substantiate your claim
  • The fee was not related to parking at your regular workplace

If your expense meets all of the above criteria, simply add it as a deduction when completing your tax return.

How Much Parking Can You Claim on Tax Without Receipts?

What if you don’t have receipts for my parking fees? How much parking can you claim on tax without receipts?

Below are some guidelines relating to claiming work-related expenses without receipts:

  • Work-related expenses without receipts can be claimed if the total is below $300. This $300 limit for the financial year is the total work-related expenses without receipts. This includes parking fees. If the claim is less than $300, you do not need receipts but the ATO still requires written evidence detailing why you are claiming the expense.
  • Individual work-related expenses that are less than $10 do not require receipts. Still, the ATO requires proof of how these expenses were calculated.
  • If you have work-related parking expenses or other work-related claims that exceed the ATO’s limits, you are required to provide acceptable documentation (receipts or records) to prove your claims.

Our advice is to keep receipts and records of all work-related expenses you incur during a financial year.

We find it most convenient to take pictures of receipts and/or store physical receipts in a folder with a clear label, such as “Work-Related Receipts for Tax Return for 2024 (or that particular financial year).

Learn more: What Can I Claim on Tax Without Receipts in 2024?

FAQs

Can you claim parking fines on Tax?

The ATO clearly states that you cannot claim a parking fine on tax. Even if you incur a parking fine on a work trip, you cannot claim it.

Learn More from ATO’s Page: Expenses for Parking, Tolls, Accidents, Licence and Fines

Can you claim work parking on tax?

Yes, you can claim parking fees or tolls you pay for when using your vehicle for work-related trips or activities. You are not allowed to claim parking at your regular place of work. The ATO also states you are not allowed to claim toll fees for commuting between home and work. These tolls are considered private expenses.

Can you claim airport parking on tax?

Yes, you can claim work-related airport parking fees on your tax return in Australia.

Examples of being eligible to claim airport parking on your tax return include:

  • Business Travel: If you need to travel for work, such as a training session, conference, or meeting and you incur parking costs at the airport, you may be eligible to claim these expenses. You cannot claim the cost of travel between your home and work.
  • Transporting Work Equipment: If you are required to transport bulky or heavy equipment or tools for work and cannot use public transport to do so, airport parking costs may be deductible.

To claim these airport parking expenses, you need to be sure:

  • It is strictly work-related travel
  • You pay the expenses yourself
  • You are not reimbursed for the airport parking costs
  • You have receipts or records of your expenses to prove your claim

Can you claim hospital parking fees on your taxes?

In most cases, you are not allowed to claim hospital parking fees on your taxes if they occur during personal visits, such as receiving treatment or visiting your doctor. These are considered private expenses and cannot be deducted on your tax return.

There may be expenses where hospital parking fees are deductible on taxes, such as:

  • Work-Related Visits: If you incur parking fees at a hospital while visiting for work-related activities, such as visiting patients if you are in the healthcare field, you may be eligible to claim these expenses.
  • Charitable Activities: If you perform charitable activities or volunteer work and incur parking fees at a hospital or care facility, you may be able to claim a deduction for these costs. The charity needs to be endorsed by the ATO as a deductible gift recipient for you to be eligible for a claim.

Can you claim university parking on tax?

You can claim a deduction for self-education expenses if the education relates to your employment activities.

If you have self-education expenses that are directly related to you earning income from employment activities, you may be eligible to claim parking expenses.

However, you cannot claim university parking on tax in the below circumstances.

  • You are not employed
  • The expense isn’t connected to your current employment activities
  • It is only generally related to your employment activities
  • It enables you to become eligible for new employment opportunities or a change of industries (i.e. from a dental assistant to a dentist)

Claiming self-education expenses is one of the most confusing areas for our clients and we understand it can be difficult to sort through all the rules.

If you have questions regarding self-employment expenses, we’ve helped many students maximise their tax returns.

We’re happy to go over any questions with you and help you get your highest return possible.

Likewise, you can review our international student guide for more information.

For the ATO’s rules regarding self-education expenses and examples of eligibility to claim self-education expenses, see this page: Self-Education Expenses You Can Claim.

Conclusion

The ATO allows certain parking expenses to be claimed on tax returns.

To claim a parking fee, the cost must be work-related, not reimbursed by your employer, not for parking at your regular place of work, and proven with records or receipts.

We hope our guide has provided clear answers to your questions.

If you have further questions, our certified tax refund specialists would be happy to chat with you.

We can sort through all of your work-related expenses, determine which ones are claimable, and ensure you get the maximum tax refund you are entitled to.

Quick & Easy Tax Refund

Simply fill out the form and one of our Australian tax experts will call you back.

    yes I provide consent and authorise My Tax Refund Today (ABN 87145232319 and Tax Agent 23282009) to add me as a client in the Tax Agent Portal.

      yes I provide consent and authorise My Tax Refund Today (ABN 87145232319 and Tax Agent 23282009) to add me as a client in the Tax Agent Portal.
      Google Rating
      4.7
      Based on 1070 reviews
      ×
      js_loader