When Can You Claim Removal or Moving Expenses as a Tax Deduction?

Moving to a new place can be exciting, but the process is not always easy. Before settling in a new location, you need to find a moving date, pack all your belongings, and transport them. While all this is happening, you also have another big thing to consider: expenses. Whether you move on your own or hire professionals like AAA City Removalist, you will incur different costs throughout the process.

Moving costs can quickly add up and get expensive, so any form of financial reprieve is welcome. Specifically, if you are moving for your job, you might be wondering if your moving expenses are tax-deductible. Read on to learn more about how the taxation rules will work for such cases.

Can You Claim Moving Expenses on Tax in Australia?
The short answer is generally no. While many people search for ways to claim moving expenses on tax, the Australian Taxation Office (ATO) generally considers relocation costs to be private expenses rather than expenses incurred while earning income.

General Rule for Moving Expenses as a Deduction

According to the Australian Taxation Office (ATO), removal and relocation expenses refer to the costs incurred when moving for work-related reasons. It may include transferring locations within your existing employment or for a new job under a different employer.

Regardless of your situation, the ATO specifies that these expenses are not deductible from taxes since they are not directly related to earning your income. Rather, they help you start earning income, so they count as private expenses.

Even when relocation expenses for work are necessary to start a new role or transfer to another location, they are generally not considered tax-deductible for individual taxpayers.

EOFY 2026: Why Moving Expenses Become a Popular Tax-Time Question

As 30 June approaches, many Australians review their finances and look for legitimate tax deductions before lodging their tax return. People relocating for a new job, transferring interstate, or moving closer to work often assume their moving costs may be tax deductible.

However, moving expenses remain one of the most misunderstood areas at tax time. While relocation may be directly connected to employment, the ATO generally considers these costs private in nature rather than expenses incurred while earning assessable income.

This means expenses such as removalist services, packing materials, storage fees, temporary accommodation, and transport of household goods are typically not claimable by individuals, even when the move is work-related.

Common EOFY Misconceptions About Moving Expenses

Before lodging your tax return, it is important to understand what can and cannot be claimed.

“I moved interstate for a new job, so I can claim the cost.”
Not usually. The ATO generally treats relocation costs as private expenses, even when the move is necessary to commence employment.

“My employer asked me to relocate.”
Employer-required relocation does not automatically make the expense deductible for employees.

“I hired professional removalists.”
Using a professional removalist service does not change the tax treatment of the expense.

“I moved closer to work.”
Relocating to reduce commuting time is considered a personal choice and is generally not tax deductible.

EOFY Relocation Checklist

If you are planning a move before the end of the financial year, consider the following:

• Keep all relocation-related invoices and receipts.
• Discuss relocation assistance packages with your employer before incurring expenses.
• Confirm whether any costs may be reimbursed under an employer relocation policy.
• Seek professional tax advice if salary sacrifice or FBT arrangements are involved.
• Avoid claiming moving expenses without confirming eligibility with a qualified accountant.

 
Although most individuals cannot claim moving costs as deductions, maintaining proper records can assist with employer reimbursements and tax planning discussions.

How to Prepare for a Work-Related Move Before EOFY

If you’re relocating for a new role or an internal transfer, planning ahead can help avoid unnecessary costs and administrative issues.

Before moving, consider:

• Confirming whether your employer offers relocation assistance.
• Obtaining written confirmation of any reimbursement arrangements.
• Keeping records of all relocation-related expenses.
• Updating your address with the ATO, banks, insurers, and service providers.
• Reviewing any salary sacrifice arrangements with a qualified accountant.

 
While most moving expenses are not deductible for individual taxpayers, understanding your options before the move can help you make informed financial decisions.

Claiming Moving Expenses Through the Fringe Benefits Tax Act

While you cannot claim your moving expenses as tax deductions, a possible workaround is to have your employers “pay” for these through Fringe Benefits Tax (FBT).

FBT is a tax that companies pay for employee benefits they offer. However, one exemption in the FBT Act allows employers to pay or reimburse certain costs associated with an employee’s relocation. They will also be able to claim tax deductions for the costs incurred and GST input tax back on the expense. Your moving expenses become tax-deductible since you are not paying them personally.

With this, you can work out an agreement with your employer to reap this benefit. In most cases, employees pay the expenses through a salary sacrifice agreement, which reduces their gross annual wage by the total relocation costs. Employers can then pay the costs directly or reimburse you if you have already paid for them.

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To better understand how this arrangement works, consider this example: You are moving to another state in Australia and pay a total of $11,000 in relocation expenses.

Under a salary sacrifice agreement, you essentially “sacrifice” the $11,000 expenses from your wages. However, your employer will only take $10,000 since they can claim back $1,000 GST input tax credits, totaling $11,000 gains without any FBT to pay. They will then reimburse you the full $11,000 you paid for your relocation, allowing you to enjoy the tax deduction for your move.

All relocation costs paid by your employer will be tax-deductible, almost like they were paid as salary or benefits. They will also receive appropriate GST input tax credits and have no payable FBT. So, conversely, you can enjoy a tax-free move.

Overall, this arrangement can understandably sound confusing at first, so it is highly recommended that you speak with an accountant to work through the numbers. Additionally, not all companies offer similar FBT packages, so make sure you discuss with your employer beforehand.

Scope of Removal and Relocation Costs

If you are interested in claiming your moving expenses as a tax deduction, it is essential to know what specific items count as removal and relocation expenses:

• Removals and storage of belongings
• Relocation transportation
• Incidental costs associated with selling the old house and acquiring a new house
• Temporary accommodation, meals, and leasing of household goods
• Utility connections (telephone, gas, electricity)

Again, there may be restrictions on what you can claim as tax deductions. Thus, it will be best to consult a tax accountant for advice on how to go about your situation.

Moving can be stressful, given everything you need to plan for and coordinate. So if you need a helping hand, consider hiring professional Movers like AAA City Removalist to take over the work. At the same time, do not let the costs add to your headaches. Instead, take some time to figure out what arrangement you can have to make your moving expenses tax-deductible.

FAQs

Can I claim moving expenses on my tax return in Australia?
In most cases, no. The ATO generally considers moving expenses private in nature, even when relocating for employment.

Are removalist fees tax deductible?
Removalist fees are generally not tax deductible for individual taxpayers.

Can employers pay relocation costs?
Some employers provide relocation assistance packages that may qualify for favourable Fringe Benefits Tax treatment.

Should I keep receipts for relocation expenses?
Yes. Even if the expenses are not personally deductible, receipts may be required for reimbursement arrangements or tax advice purposes.

What expenses are usually included in relocation costs?
Common relocation expenses include removalist services, transport, storage, temporary accommodation, utility connections, and certain property-related costs.

Planning a Move Before EOFY?

Whether you’re relocating for a new job, transferring offices, or moving interstate, AAA City Removalist can help make the process smoother and stress-free.

Our experienced team provides professional packing, transport, storage, and relocation services across Sydney and surrounding areas.

Call (02) 9737 1111 or request a quote today.