Claiming Travel Expenses Using a Daily Allowance Method

Claiming Travel Expenses Using a Daily Allowance Method

Claiming Travel Expenses Using a Daily Allowance Method – Be Very Careful

We have seen some disasters here and it is so easy for the ATO to remove your expenses so please make sure you get it right. It is not something we have a lot of flexibility about and a “common sense” approach will almost always fail.

The ATO are also very active in auditing travel claims and they can do this largely electronically so it becomes easy for them to disallow your claim and ask you for substantiation. My advice to clients wanting to claim the daily rate travel allowance is make sure you are entitled to make your claim this way or you risk losing your deductions. Here is what is required:

  1. You MUST receive a travel allowance (not an adjustment to your salary, a packaged allowance, or reimbursements); AND
  2. You MUST work away from home AND stay overnight in the course of your employment (Not because you choose to do so); AND
  3. You MUST be able to show you are actually incurring travel expenses (think credit card or bank statements).

If you do not meet these three conditions then you cannot claim travel expenses using the daily rate method.

It isn’t all bad news though. You may still be entitled to a claim but your claim will need to be based on actual costs and you will need to keep receipts etc.

What Can We Do?

Talk to us and let us give you proper advice on what you need todo. Keeping receipts is not hard work and electronic records are acceptable to the the ATO.

If you have any doubts give us a call on (07) 54489600 or drop us an email on admin@growaccounting.com.au.

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