Business travel claims

The ATO has released the 2009/10 travel, accommodation and meal allowance rates.

When claiming travel allowance expenses and overtime meal allowance expenses the following key points must be remembered:

	The claim must be allowable. A deduction claim cannot exceed the amount actually incurred for work-related purposes. The payment of an allowance does not of itself allow a deduction to be claimed.
	An allowance must be paid. The substantiation exception only applies if the employee is paid an overtime meal allowance or a travel allowance. The allowance must have an identifiable connection with the nature of the expense covered.
	For travel allowance expenses the employee must sleep away from home.
	Where the amount claimed is no more than the applicable reasonable amount, substantiation of the claim with written evidence is not required. This is known as the substantiation exception.
	For claims in excess of reasonable amounts, the whole claim must be substantiated with written evidence, not just the excess.
	Verification of reasonable claims may be necessary where the substantiation exception is applied. The employee may be required to show: How they worked out their claim An entitlement to a deduction (for example that work-related travel was undertaken) A bona fide travel allowance was paid If accommodation is claimed, that commercial accommodation was used.

The nature and degree of evidence will depend on the circumstances. They may include the circumstances under which the employer pays allowances, the occupation of the employee, and the total amount of allowances received and claimed during the year by the employee.

Published : 18 September 2009