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Ah, July. That time of year when Australians reach for the woollies, book an escape to somewhere balmy, and dig out a dog-eared folder labelled ‘receipts’. Yes, it’s tax season – that annual ritual more feared than a Qantas baggage handler on strike. And if you’re a business traveller who likes to slip a little Aperol in with your agenda, the ATO may be falling into your DMs.

Enter Corporate Traveller – the Flight Centre Travel Group’s savvy small business offshoot – waving a tart little caution flag for those in the ‘bleisure’ brigade: that growing cohort of Aussies who think it perfectly sensible to tack a few nights in Noosa onto a ‘networking summit’ in Sydney. Just be warned – the Australian Taxation Office (ATO) is watching. Closely.

According to Allied Market Research, global bleisure travel spending is projected to reach a whopping US$731.4 billion by 2023. Not bad for a trend once dubbed a travel agent’s fantasy. And here in Australia? January is the bleisure bonanza, with Corporate Traveller’s FY25 bookings revealing a seven-night average trip, up from the standard five. It’s official: we love a good work-trip-turned-holiday. The ATO, however, remains famously humourless about it.

Tom Walley, Global Managing Director for Corporate Traveller, is keen to ensure Aussie jet-setters don’t get caught with their travel pants down. “This tax season, business travellers should take extra care to avoid scrutiny,” Walley says, sounding every bit like a school headmaster warning Year 10 about muck-up day.

And with good reason. The ATO is gunning for work-related expenses – and bleisure, that oh-so-handy blending of boardrooms and beach bars, sits squarely in the crosshairs.

Fortunately, help has arrived in the form of Moneywise Global’s John Tuohy, a man who knows his way around a tax code like a pilot knows a flight path. Tuohy’s first pearl of wisdom? Don’t file too early. “Most people don’t realise employees have until 31 October to file. If you register with a tax agent, you’ve got until May 2026,” he says. “So don’t rush unless you know your tax is simple and you’re expecting a refund.”

It’s advice best heeded – especially in a nation whose tax code spans over 14,000 pages (yes, you read that right). Within those dense lines lie all manner of incentives, booby traps and audit triggers. So, what exactly should a bleisure traveller do to avoid a date with the taxman?

Here’s Tuohy’s survival kit:

1. A holiday is not a work trip – even if you squint. Yes, we all love to drop the words ‘conference’ and ‘retreat’ into the same sentence as ‘Margaret River’. But unless you can draw a clear line between your mojito and your meeting agenda, the ATO won’t be charmed. Tuohy advises keeping a meticulous travel diary. A few calendar entries and scanned receipts might be enough to avoid trouble. Just don’t try to write off your surfboard hire.

2. Weekend stays can count – sometimes. If your business meeting wraps on Friday and the next gig’s on Monday, your hotel stay might be deductible. But here’s the kicker – drag along your spouse or the kids, and their associated costs (meals, entry to Sea World, that second suite) are not claimable. The ATO may be slow, but it isn’t stupid.

3. Client entertainment can be legit – if there’s business in the blend. Fancy a round of golf with your client in the Hunter Valley? It might just pass muster – if you’re discussing a project, negotiating a deal, or moving business forward. Casual chinwags over the 9th hole don’t count. And no, trying to write off a bottle of Penfolds as a ‘client lubricant’ won’t fly either.

4. Day trips? Don’t bother. Unless you’ve packed an overnight bag, your Uber to a one-day offsite isn’t tax deductible. There’s a slight exception for work kilometres in your vehicle, but even then, you’ll need to log every turn of the steering wheel.

5. Don’t double dip – the ATO’s not that silly. Plenty of travel expenses get reimbursed by employers, and claiming them again on your tax return is a sure-fire way to trigger an audit. But if you’ve received a travel allowance or clocked up kilometres in your own vehicle? Then yes, you may be entitled to claim. Just remember: honesty isn’t just the best policy – it’s the only one that keeps the ATO from knocking.

Walley adds, “With business travel costs easing and confidence returning, bleisure is booming – but that means more eyes are on how it’s managed.”

And that’s the rub. Between the Australian Open, the Melbourne Cup, Grand Prix events, and the endless parade of international pop stars gracing our shores, 2025 is shaping up to be a vintage year for bleisure travel. But if you’re planning to sneak in a few ‘extra’ nights, remember to keep your records tighter than a budget airline’s legroom.

“Keeping on top of your documentation should be a priority for every business traveller,” says Walley. “This proactive approach will help you manage your tax obligations while travelling, and ensure you are compliant with Australian tax laws.”

So, there you have it. Bleisure isn’t banned – far from it. But as the ATO warms up for another year of audits and eyebrow-raises, don’t give them a reason to poke around your passport stamps.

Tax season may be taxing, but with a bit of savvy planning and a lot of honest paperwork, you can enjoy your latte in Lyon guilt-free – and deduction-worthy.