Addendum to reasonable travel and overtime meal allowances determination
The ATO has issued an addendum to Taxation Determination TD 2017/19 (reasonable travel and overtime meal allowance expense amounts for the 2017/18 income year).
The addendum sets out new reasonable amounts for domestic travel expenses for employee truck drivers. The reasonable amounts are for breakfast, lunch and dinner, and these are $24.25, $27.65 and $47.70 respectively.
The amounts for each of these meal breaks are separate and cannot be aggregated into a single daily amount. This is of particular importance for the days on which travel commences and ends, when some meals may not be deductible because they are not consumed in the course of work travel.
A driver’s work diary (as maintained for fatigue management purposes) can be used to demonstrate when meal breaks were taken, since employee truck drivers may take meal breaks at different times of the day compared to other taxpayers. It should also be noted that amounts cannot be rolled over from one meal to another (eg if the full amount for breakfast is not expended, it cannot be carried over to lunch or dinner).
The deduction allowed for each meal is the amount actually spent and not simply the reasonable amount specified. Although the formal substantiation requirements do not apply for claims up to the reasonable amount, taxpayers should still be able to demonstrate the basis for their claims.
If you have questions, please do not hesitate to contact us.
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@northadvisory.com.au
Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au
“The published reasonable amounts provide a safe harbour — if your meal or travel-allowance claim does not exceed these amounts and you have a bona fide allowance, you won’t need to retain every receipt.”
About the author
Marius Fourie - Director & Business Advisor
As Director and Business Advisor, Marius uses his accounting expertise and empathetic skills to work directly with business owners and help them feel at ease with their finances.
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Key Takeaways
The “reasonable amounts” determination offers a practical safe-harbour for meal and travel expense claims.
Employees who get a legitimate allowance and whose expenses stay within ATO-prescribed limits can claim deductions without extensive record-keeping.
The determination applies to overtime meals, domestic travel and overseas travel — but only when a bona fide allowance is provided.
Without an allowance, or for wholly private expenses, the exemption doesn’t apply and standard substantiation rules are required.
If your claim exceeds the reasonable amount, detailed documentation becomes mandatory.
That means keeping receipts, diary entries, travel logs or other evidence for the full amount — not just the excess.
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Frequently Asked Questions
What is the “reasonable amounts” determination and why does an addendum matter?
The “reasonable amounts” determination sets out the maximum allowances for overtime meals, domestic travel, and overseas travel that an employee can claim without needing full documentation — as long as a bona fide allowance is received. The addendum reflects updates or clarifications (e.g. new rates or additional conditions) for the most recent or upcoming income year under ATO rulings
What types of expenses are covered by this determination?
It covers: overtime meal expenses (food and drink when working overtime); domestic travel expenses (accommodation, meals, and incidentals when travelling away from home overnight for work); and overseas travel expenses (food, drink and incidentals while travelling for work overseas).
When can I claim without keeping receipts?
If you receive an allowance to cover travel or meals, and your claim does not exceed the “reasonable amounts” specified by the ATO, you may claim deductibility without keeping receipts under the substantiation exception
What are the consequences if I claim more than the “reasonable amount”?
If your expenses exceed the reasonable amount, you must retain full substantiation — receipts or other written evidence — for the entire amount claimed. Otherwise, the claim may be disallowed.
Does the reasonable-amount approach apply if I get no allowance from my employer?
No — the allowance must be a bona fide allowance (i.e. genuinely paid to cover those travel or meal costs). If there is no allowance, you must follow the standard substantiation rules (with receipts and evidence) to claim deductions.
Does this apply to travel allowances only?
It applies when employees are travelling for work and receiving travel meal allowances, particularly relating to domestic travel expenses for truck drivers.
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