For employee going overseas for business purpose for more than 6 days, the employer will be paying the travel allowance to cover the accommodation, meal and incidentals. The allowance will be within the ATO reasonable amounts.
I understand there are 2 portions of this allowance, one is for meals and incidentals, the other is for accommodation and the oversea accommodation needs to be reported via STP under “other allowances”.
I would like to confirm details on the Meals and Incidentals portion.
On the STP 2 quick reference guide, the allowance for meals and incidentals for domestic is NOT REPORTABLE if within ATO reasonable amount.
But there is no reference for overseas meals and incidentals.
On Taxation Determination 2024/3, it indicates the employee can choose to either leave the allowance out of the tax return adn not claim any deduction, or include them as allowance on tax return and claim deduction.
My question is does the employer has to report this meal and incidental allowance via STP, if within the reasonable amount ?
If not, does it mean it won’t be showing on the employee’s payment summary and the employee will choose to add them in their income tax return?
If yes, what allowance code is to be used on the STP reporting?
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