Call us: (08) 6267 2200
reception@optimapartners.com.au
  • PAY MY INVOICE
Optima PartnersOptima PartnersOptima PartnersOptima Partners
  • Home
  • About Us
    • Meet The Team
    • Testimonials
  • Our Services
    • Business Advisory
    • Taxation Services
    • Self Managed Superannuation
    • Bookkeeping Services
    • Corporate Secretarial Services
  • Latest News
  • Contact Us

Work Related Travel Expenses

    Home LIfe Lessons Work Related Travel Expenses
    NextPrevious

    Work Related Travel Expenses

    By admin | LIfe Lessons, Tax time / planning | 0 comment | 17 February, 2017 |

    Work Related Travel Expenses –

    work related car expensesWhat are your substantiation requirements?

    You may find yourself in the situation where you have received a travel allowance from your employer and you are spending money while on work related travel for the cost of meals, accommodation and incidentals – so where do you stand with the tax man and what records do you need to keep?

    Traditionally when claiming work related deductions you are required to keep copies of relevant invoices and documentation to substantiate your claim, however, there is an exception to the substantiation requirement when claiming expenses for work related travel. Under taxation ruling TR 2004/6 the ATO has set out the rules for which individuals may be exempt from the substantiation requirement and able to claim work related travel and meal expenditure on a “reasonable” basis:

    • The Allowance must be paid – the employee is paid an overtime meal or travel allowance and the allowance has an identifiable connection with the nature of expense covered.
    • Where the amount is no more than the applicable reasonable amount, substantiation of the claim with written evidence is not required
    • If the claim is more than the reasonable amount, the whole claim will need to be substantiated, not just the excess
    • For travel expenses the employee must sleep away from home
    • In appropriate cases where the substantiation exception is relied on, the employee may still be required to show details of how they worked out their claim and that the expenses were actually incurred.

    The “reasonable amount” is reviewed on a yearly basis of what the ATO deems to be reasonable for the costs of meals, accommodation and incidentals in different locations, both domestically logbookand overseas. These amounts can be found via the ATO website with the current Tax Determination TD 2016/13.

    In some cases where you are travelling 6 or more nights in a row you may be required to keep a travel diary to record the dates, places, times and duration of your activities and travel to allow for accurate calculation of employment-related and private expenditure.

    The substantiation exception does not occur if you did not receive a travel allowance, and in this case you will be required to keep all written evidence as well as travel diaries to substantiate any work related travel claim. The exception also does not apply to accommodation expenses on overseas travel and written evidence will be required.

    The ATO have a handy little app for individuals called myDeductions tool  It’s a great way to keep track of your expenses and receipts right from your phone or tablet.

    Should you have any queries in regards to work related expenditure you incur, feel free to contact your accountant at Optima Partners.

     

     

     

     

    Rick Filocamo – OP AccountantATO app

    work related expenses

    Leave a Comment

    Cancel reply

    Your email address will not be published. Required fields are marked *

    NextPrevious

    Optima Partners is an energetic and innovative accounting, taxation and business advisory firm with offices in Osborne Park, Guildford and Fremantle.

    To discover how we help businesses across Perth please drop us a line today.

    Tel: (08) 6267 2200

    Email: reception@optimapartners.com.au

    Osborne Park Office

    Suite 3, 128 Main Street,
    Osborne Park,
    WA 6017

    Office Hours:
    Weekdays 8:00am – 5:00pm

    Postal Address

    Locked Bag 5000,
    Osborne Park,
    WA 6917

    Guildford Office

    143 James Street,
    Guildford,
    WA 6055

    Office Hours:
    Weekdays 8:30am – 5:00pm

    Fremantle Office

    Level 1, 72 Marine Terrace,
    Fremantle,
    WA 6160

    Please call for appointment

    Copyright 2021 The Small Business Lounge | All Rights Reserved
    • Home
    • About Us
      • Meet The Team
      • Testimonials
    • Our Services
      • Business Advisory
      • Taxation Services
      • Self Managed Superannuation
      • Bookkeeping Services
      • Corporate Secretarial Services
    • Latest News
    • Contact Us
    Optima Partners