Tag: Travel Allowances

Travel Allowances – Domestic and Overseas

In TD 2017/19, the ATO has set what is considers ‘reasonable’ limits for allowances paid in connection with overnight travel (see the tables at the end of this spcial edition). In such cases, the employee must sleep away from their home. The amount of the allowance depends on both your destination and your annual salary. Unlike an overtime meal allowance reasonable domestic and overseas travel allowances do not have to be paid under an industrial award or agreement. Reasonable travel allowances are paid in respect of set travel components:

  • Domestic allowances include components for accommodation, meals and incidentals.
  • Overseas allowance include components for meals and incidentals only. They do not include a component for accommodation. Any claim for accommodation, regardless of the value, must be fully supported by written evidence.
The components of demestic travel allowances are set with reference to costs in spectific destinations and according to an employee’s annual slalary. Designated high cost contry centres also have specified accommodation rates.

LIkewise, overseas allowances for meals and incidentals are set with reference to costs in the various countries. Countries are grouped todgether according to the relative cost of living associated with each location.

For example, less expensive countries to travel in, susch as Bolivia and Paraguay, are grouped together (Group 2), while countries that are expensive to travel in, such as Denmark and Norway are grouped together at the other end of the scale (Group 6).

Travel allowances are comprised of the following components:

Accomodation (Domestic Travel Only)
The accommodation reates shown for domestic travel apply only for stays in commercial establishments, such as hotels, motels and serviced apartments. If a dfferent type of accommodation is used, the rates do not apply. Reasonable allowance amounts have not been set for overseas accommodation and written evidence is required for claims made for this time of expense.

Meals
The reasonable amount for meals depends on the period and time of travel. That is, the rates will only apply to meals (ie breakfast, lunch, dinner) that fall within the period from the commencement of travel by the employee to the end of travel covered by the allowance. Therefore, in determining the reasonable amount for meals, one must not only look at the reasonable amount per meal (ie the dollar figure provided in TD 2017/19), but also what meals (ie breakfast, lunch, dinner) it is reasonable to include from the time the travel commences to the end of the travel period covered by the allowance.

Incidentals
……..

To continue reading this article in full, including examples of caculations etc, please log into your members area РSpecial Editions РTravel //mytaxsavers.com.au/app/uploads/2017/07/TRAVEL-ATRspecials-2017-13p-final.pdf
Not a member? Join today //mytaxsavers.com.au/plans/subscriptions/