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13 May 2026

I am an Australian tax resident working overseas as a short-term consultant, mainly for OS-based clients. I am trying to understand travel allowances.


TD 2024/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2024–25 income year? sets out allowances for employees.


In determining if I am employee, do I apply ATO guidance on the difference between employees and independent contractors? For example, as set out in https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/employee-or-independent-contractor-what-s-the-difference.


Grateful for any guidance that can be provided on this, thanks

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Taxduck(Taxicorn)Taxicorn
14 May 2026

The reasonable travel amounts can only be used if a travel allowance is paid.

From the Tax Determination below

"The approach outlined in this Determination can only be used where you receive an allowance to cover the particular expenses you are claiming – for example, you received an accommodation allowance and are claiming accommodation expenses. This Determination is not relevant to you where you do not receive an allowance to cover your expenses."

TD 2025/4 | Legal database

14 May 2026

Thanks very much Taxduck. Agree. Yes I do receive travel allowances as an OS consultant. The issue I am trying to understand is what does "employee" mean? Perhaps receiving an allowance is not in itself enough for this TD to apply???

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Overseas travel allowances for consultants | ATO Community