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Reasonable travel and overtime meal allowance expense amounts for the 2017-18 income year

The ATO has released updated reasonable travel expense and overtime meal allowance expense amounts for the 2018 income year.

You can find the rates and examples here in TD2017/19.

When an employee receives a bona fide travel allowance or overtime meal allowance they do not need to meet the normal substantiation rules as long as the deductions being claimed do not exceed the ATO’s reasonable amounts.

What does this mean?

  1. If you receive travel allowance, you expend it and the amount claimed is below reasonable amount, you don’t need to keep all receipts.
  2. You do need to receive an allowance to qualify for this exception.

Keep in mind, this is an area that is under an increased level of ATO scrutiny at the moment. You need to be able to show how your deduction has been calculated and that you have in fact incurred the expenses being claimed.

The ruling states reasonable amounts for the substantiation exception in relation to claims made by employees for:

(a)overtime meal expenses

    • – for food and drink when working overtime

(b)domestic travel expenses

    • – for accommodation, food and drink, and incidentals when travelling away from home overnight for work (particular reasonable amounts are given for employee truck drivers, office holders covered by the Remuneration Tribunal and Federal Members of Parliament)

(c)overseas travel expenses

    – for food and drink, and incidentals when travelling overseas for work.

You can head to the ruling or refer to other article HERE. If anything is unclear, give us a call on 07 3160 7386.

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