Work only pays for Y - techniques for better class (not ripping company off)?

[GCC]

Interesting thread. I run a not for profit association, so our expenditure on travel is a use of member funds and some of those members believe we should save those funds at every opportunity, so all flights should be BFOTD. Mind you, they are flying once or twice a year - not once or twice a week. A few of our management team, the president and I do a lot of dom travel + 1 or 2 long haul trips each year to Europe or the USA.

I think the point is that there is more to "travel policy" than just class of travel. I was talking to a friend recently who travels as much as I do domestically - all in QF J. I'm in Y, but I get FF points & status and she gets none. I prefer my travel policy to hers as I get to use those points and my QF status benefits for family holidays etc.

Basically policy for my travel is:
-we pay for the lowest upgradable QF Y fare - essentially this is the benchmark fare
-I can use that amount to buy another fare on another airline, in another class - or contribute towards a more expensive fare.
-I keep FF points from all travel & FF points from my corporate card
-I can use these to upgrade as I wish. I have WP so have pretty well always received points upgrades applied for.
-I am able to select Hilton for most stays if available so earn HH points- again for my personal use
-We are pretty relaxed about arrival times, so if flying Y can have a day or two to recover.

We last had a discussion with our board of our travel policy in 2008, GFC time. I'm considering revisiting the issue soon and proposing we fund Y+ on long haul rather than upgradable Y. On the whole though what we have seems OK.

 

[k3nnis]

Do employers give out F class instead of J class for long haul travel for employees? Are there such companies around ?

 

[ReLoad]

I worked for a company that had its rules as long haul J, but, as an option if you flew Y instead you would receive 1/3 of the fare difference as "flash money" to help you get over the shock of whY.

Often we would J over to be fresh for work and whY home with for duty free etc.

It was a great deal and was win/win.

 

[Canny man]

Do employers give out F class instead of J class for long haul travel for employees? Are there such companies around ?

Our policy is J, except when F is cheaper, then there's no problem with flying F. This has happened twice in the last year to me. Oversold full fare J, F sale on. Seems reasonable.

On the flip side, I voluntarily downgrade to Y when flying domestic as I really don't think the J product on the 767's is worth an extra >$1k each way (to Perth), and as a WP1 I get front row economy anyway, usually with a shadow. The savings leave some space in the budget to fly me or my people long haul in J.

 

[k3nnis]

I like your policy!

Our policy is J, except when F is cheaper, then there's no problem with flying F. This has happened twice in the last year to me. Oversold full fare J, F sale on. Seems reasonable.

On the flip side, I voluntarily downgrade to Y when flying domestic as I really don't think the J product on the 767's is worth an extra >$1k each way (to Perth), and as a WP1 I get front row economy anyway, usually with a shadow. The savings leave some space in the budget to fly me or my people long haul in J.

 

[rtyuiop]

So, just resurrecting this moderately old thread with a tax question...

I'm going to try to organise to pay for a reasonable class of ticket and expense Y costs back to my employer. Does anyone know if the amount I pay but do not claim would be a valid tax deduction (if anyone can point me to something official from the ATO that'd be ideal!), and if so, what paperwork the ATO is going to want?

Cheers,

Danny

 

[Moopere]

I rang my accountant about this. It looks completely legitimate, but I've been advised to keep a travel diary. Worth a good read here:

TD 2010/19 - Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2010-11 income year? (As at 30 June 2010)

This is the per diem type costs, but there are links and whatnot to the whole area of tax law surrounding travel and work related expenses. Within the allowable limits set by the tax office, it seems fairly wide open. Note though that the allowances/day are not very generous, so you are unlikely to be able to spend time and fully claim stays at the top end of town and eat caviar dinners every night.

 

[11sjw]

Do employers give out F class instead of J class for long haul travel for employees? Are there such companies around ?

Rio Tinto's policy used to be "Any more than X hours and it is in J." X used to be 3 but I believe it may now be 4.

 

[Flashback]

Rio Tinto's policy used to be "Any more than X hours and it is in J." X used to be 3 but I believe it may now be 4.

I believe it is still 3 for BHP BTW. We always exercised discretion when doing PER-ADL, as it's borderline. We'd often just do a flexi-whY.

 

[Stephen65]

I'm not sure this thread is even remotely close to turning into a war. I think everyone here would love to have a J only policy for business travel. I know I would. Unfortunately it is not always possible.

Being self-employed I get to decide my own business travel policy and after much consideration and debate it was decided that it would be J only for all travel

 

[rtyuiop]

... but there are links and whatnot to the whole area of tax law surrounding travel and work related expenses.

Yikes - they sure don't make it simple, do they! Still, I suppose that's what accountants are for.

Thanks! The stuff linked from that page does look like what I'll have to figure out.

Danny