It is common for individuals to incur expenses while looking for a new job and attending interviews, including travel and parking costs. However, the expenses incurred when looking for a job are generally not tax deductible.
These expenses come at a point too early to be regarded as being incurred in gaining assessable income. Similarly, any expenditure that is a prerequisite for you to obtain a new job (e.g. undertaking a police check) are not deductible.
On occasion, your prospective employer may choose to reimburse the costs associated with travelling to an interview. However, please note, if your costs are reimbursed by your prospective employer, you must provide documentary evidence of your expenses.
If you receive this benefit from a prospective employer, it is considered a fringe benefit. Generally, the payment of expenses for employment interviews and selection tests may be considered an exempt fringe benefit. Essentially, your employer may be able to claim a tax deduction for your costs (without incurring Fringe Benefits Tax), even though you may not be entitled to a tax deduction yourself.
