Travel Allowances ATO ruling

[lovetravellingoz]

Sent from the Throne

Too much information.....

 

[bismarck]

Preface this by saying the following is not tax advice or financial advice. It is just my interpretation of the TD previously linked. It would pay to read through and make your own interpretation, and also seek tax advice if it's not clear.

The tax determination lists the amounts that the ATO believe are reasonable for travel expenses. The main effect is that the TD removes the substantiation and FBT requirements, provided you work within the various requirements. It is important to note that the following is also based on you having actually spent money on the expense.


Having just written all that, it is very complex and I probably haven't explained it well. Maybe cutting down to your points:

a) you can't put that on the payment summary as a travel allowance as that is the employers job, include it as other income
b) claim the relevant ATO amount, provided you spent the money - yes 20 days @ $x/day meals and incidentals


If they have included the allowance paid on your payment summary then you really should be claiming a deduction, for the full expenses upto the reasonable amount.


If you significantly exceed the reasonable amounts then it is worthwhile looking into the substantiation requirements.

This is not tax advice...

Thanks medhead - very much appreciated. I had read through the TD and was trying to wrap my head around the mechanics of actually reporting it on the return.

I will likely seek professional advice, but now have a much better understanding of the questions to ask.

Cheers!

 

[serfty]

Just doing my PAYG summary and it's time to revisit TA for 2015-2016.

Overview:

Travel allowances and PAYG withholding | Australian Taxation Office

Amounts:

Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2015-16 income year? | Australian Taxation Office

 

[esseeeayeenn]

Just doing my PAYG summary and it's time to revisit TA for 2015-2016.

Overview:

Travel allowances and PAYG withholding | Australian Taxation Office

Amounts:

Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2015-16 income year? | Australian Taxation Office

Very interesting. I always have substantiaton and have never really looked at these tables.
Although I would benefit from it, it does seem a little odd that you can claim more if you earn more!
Seems the ATO keeps you in the manner to which you have become accustomed.

 

[serfty]

...
Seems the ATO keeps you in the manner to which you have become accustomed.

There is the matter that these allowances can apply to Public Servant Salaries ...

 

[Comoman]

Any idea why the overseas allowances say "status - not legally binding" when the domestic ones are legally binding.

 

[Alh01]

The new rulings for 2016-17 are here:

TD 2016/13 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2016–17 income year

I notice that the accommodation rates have now fallen well below the rates actually charged for many places that I visit, and the salary bands have been indexed upwards again. I am guessing that the bands equate to some standard levels in the Commonwealth Public Service, perhaps somebody knows what?

The overseas rates are in an Appendix to the Ruling, rather than the document itself. They do say in the legally binding body that you can use a different country group if the country you want is not listed, but it still seems strange that the Appendix is "not legally binding".

Our policy for many years has been to pay the exact allowances listed, and not show the allowance on the employee payment summaries. Makes tax returns much easier all around, as no allowances or deductions are needed on the tax returns. For overseas travel, we reimburse the exact cost of the accommodation, and nothing more, so that is not an allowance.

 

[serfty]

It is that time of the year agin! Doing PAYG summaries and it's time to revisit TA for 2016-2017.

Overview:

Travel allowances | Australian Taxation office

Amounts:

Taxation Determination - Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2016-17 income year?

 

[Alh01]

Thanks for the reference again.

The determinations for 2017-18 are:

TD 2017/19 Taxation Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2017-18 income year?

The allowable rates appear to have risen by about 1 - 2% in country areas, with accommodation rates in most capital cities, except Canberra and Hobart, remaining the same.

Doesn't appear to be much fat in these rates for most places I visit.

 

[Comoman]

Thanks for the reference again.

The determinations for 2017-18 are:

TD 2017/19 Taxation Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2017-18 income year?

The allowable rates appear to have risen by about 1 - 2% in country areas, with accommodation rates in most capital cities, except Canberra and Hobart, remaining the same.

Doesn't appear to be much fat in these rates for most places I visit.

Wonderful - tried to take a look and:

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[serfty]

That time of year again - thanks for @Alh01 for providing the links.

Thanks for the reference again.

The determinations for 2017-18 are:

TD 2017/19 Taxation Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2017-18 income year?
...

Here's a bit more on the 'exception': TR 2004/6 - Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses (Published on 28 April 2016)

 

[Alh01]

Dropped the ball on this - getting old!
Here is the link to the Travelling Allowance rate determination for 2018-19
Legal Database

This year, the salary bands have been indexed upwards by 2%. It's obviously good to have th taxpayers paying your salary.
The accommodation rates for Brisbane, Darwin & Perth have increased, but Hobart, Melbourne, Sydney and country areas have not increased at all. The daily allowance for food, drink & incidentals has increased slightly.

For overseas travel, the only change is a slight revision up for Cost Group 4. I'm just back from a Cost Group 5 country, and the rates certainly do not reflect the drop in value of the AUD. Skimpy meals ahead this year.

The legally binding version is the PDF file, which is here:
https://www.ato.gov.au/law/view/pdf/pbr/td2018-011.pdf