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Re: Travel Allowance

Newbie

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Replies 3

Hi,

 

I was sent to Japan by my employer for work for more than 2 weeks. My accommodation was paid by my employer and a flat rate of $90 a day to cover my meals & incidentals. I have spent more than $90 per day and ATO's reasonable amounts for overseas travel expenses per day is more than $90. According to ATO website I can claim the travel allowance if its within the ATO guide. However, the allowance is not shown on my Payment summary. Do I add the $90 x No of days as part of the income and then claim the amount I spent on my tax return or just the difference? Also, is a travel diary, airline tickets and overseas accommodation receipt sufficient for record-keeping or do I need daily receipts?

 

Thanks

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Most helpful response

Champion

Replies 1

Hi @qramsan

 

Thank you for reaching out to us.

 

We assume that the $90 you received was not a reimbursement (if the reimbursement is covered by the fringe benefit tax you can't claim the deduction for the expenses).

 

In general the allowances will be reported on your income statement or payment summary. You have to correctly declare your allowance on your tax return and claim the deduction for the expenses in accordance with the diary entries, bank records and any receipts you have kept for your trips.

 

We also suggest that you have a look at our taxation ruling. The examples will help you work out what you can claim.

 

Hope you find this helpful.

3 REPLIES 3

Most helpful response

Champion

Replies 1

Hi @qramsan

 

Thank you for reaching out to us.

 

We assume that the $90 you received was not a reimbursement (if the reimbursement is covered by the fringe benefit tax you can't claim the deduction for the expenses).

 

In general the allowances will be reported on your income statement or payment summary. You have to correctly declare your allowance on your tax return and claim the deduction for the expenses in accordance with the diary entries, bank records and any receipts you have kept for your trips.

 

We also suggest that you have a look at our taxation ruling. The examples will help you work out what you can claim.

 

Hope you find this helpful.

Newbie

Replies 0

Hi,

 

Thanks for your reply. The $90 is the daily allowance for meals & incidentals given by the company and this is not shown on my payment summary. However, I have spent $200 a day and this is lower than the ATO guide of $290 per day. As the daily allowance is not shown, should I add the $90 per day in my income and claim $200 per day as a deduction?

 

Thanks.

ATO Community Support

Replies 0

Hi @qramsan

 

If your travel allowance was not shown on your payment summary and was equal to or less than the reasonable allowance amount for your circumstances, you do not have to include the allowance at item 2 provided that you have fully spent it on deductible work-related travel expenses and you do not claim a deduction for these expenses.

 

See the information we have about claiming deductions for work related travel expenses as it provides you with further relevant links.

 

Thanks, Ari