Reasonable Travel and Overtime Meal Allowance Expense

This determination sets out the amounts that the Commissioner considers are reasonable (reasonable amounts) for the substantiation for the 2015-2016 income year in relation to claims made for:

1. Overtime meal allowance expenses – for food and drink in connection with overtime worked and where a meal allowance has been paid under an industrial instrument

2. Domestic travel allowance expenses – accommodation, food and drink, and incidentals that are covered by the allowance

3. Travel allowance expenses for employee truck drivers – food and drink that are covered by the allowance, and

4. Overseas travel allowance expenses – food and drink and incidentals that are covered by the allowance.

Below is the link to the 2016 ruling on the maximum claim for travel allowance before substantiation is required. In order to claim the travel allowance the expense must have been incurred. You will note from the tax determination that the amount of the allowance varies depending on your level of income.

For example : Your annual salary is $75,000 and your employer requires you to work a 5 days in Sydney and pays you a travel allowance for the week. You may be able to claim a deduction of $385.45 per night, for accommodation, meals and incidentals.

Please don’t hesitate to contact our office should you require more information or assistance with your specific situation.

David Cook CPA – Accountant