Reasonable travel and meal allowances for 2018/19
The Commissioner has set out the amounts considered to be reasonable in relation to claims made by employees for the 2018/19 income year for:
- overtime meal expenses — for food and drink when working overtime
- domestic travel expenses — for accommodation, food and drink, and incidentals when travelling away from home overnight for work (particular reasonable amounts are given for employee truck drivers, office holders covered by the Remuneration Tribunal and Federal Members of Parliament)
- overseas travel expenses — for food and drink, and incidentals when travelling overseas for work.
Overtime meals
The reasonable amount for overtime meal allowance expenses is $30.60 for the 2018/19 income year.
Domestic travel
The reasonable amount for accommodation applies only for short stays in commercial establishments like hotels, motels and serviced apartments. If a different type of accommodation is used (eg a hostel or caravan park), the reasonable amount cannot be used even if you receive an allowance.
The reasonable amount for meals depends on the period and time of travel. That is, the reasonable amounts only apply to meals (that is breakfast, lunch, dinner) that fall within the time of day from the commencement of your travel to the end of your travel that is covered by the allowance.
The reasonable amount for incidentals applies in full to each day of travel covered by the allowance, without the need to apportion for any part day travel on the first and last day.
Reasonable amounts are provided for three salary levels — up to $122,040; $122,041 to $217,200; and $217,201 and above.
Employee truck drivers
Reasonable amounts are given for meals (breakfast, lunch and dinner) as follows:
- Breakfast — $24.70
- Lunch — $28.15
- Dinner — $48.60.
The amounts for each of these meal breaks are separate and cannot be aggregated into a single daily amount. The amounts also can’t be moved from one meal to another eg, if the full amount for breakfast is not expended, it cannot be carried over to lunch or dinner.
Overseas travel
Reasonable amounts are provided for three salary levels — up to $122,040; $122,041 to $217,200; and $217,201 and above.
Salary excludes any allowances received. If you travel to two or more countries in the same day, use the cost group of the country that is in the higher cost group in determining the reasonable amount for that day.
The reasonable amount for incidentals applies in full to each day of travel covered by the allowance, without the need to apportion for any part day travel on the first and last day.
If you have questions on any of the above issues raised, please do not hesitate to contact us.
Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au
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.
Marius saw a common need in clients that just wasn’t being met by accounting providers.
That need was for clear, open communication and streamlined accounting services that didn’t come padded out with any unnecessary features.
Business owners just don’t have time to compare different accounting firms to see which one has the best packages with the best inclusions (many of which they would pay for but never use).
Key Takeaways
Reasonable allowances simplify claiming for overtime meals, domestic and overseas travel.
The ATO’s prescribed amounts — such as $30.60 for overtime meals in 2018/19 — allow relevant taxpayers to claim travel and meal expenses without maintaining detailed receipts and expense records.
Different allowances cover different situations: overtime, domestic travel or overseas travel.
Each type of work-related travel or meal allowance has its own set of reasonable amounts, depending on the nature of travel or work conditions.
Domestic travel allowances require conditions — e.g. overnight stay at commercial accommodation for accommodation portion to qualify.
If staying in non-commercial accommodation (e.g. hostel or caravan park), the “reasonable amount” rule for accommodation may not apply.
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Frequently Asked Questions
What types of allowances are covered by the “reasonable amount” tables for 2018/19?
They cover overtime-meal allowances (food and drink when working overtime), domestic travel allowances (accommodation, meals, incidentals when travelling overnight for work), and overseas travel allowances (food, drink, incidentals when working abroad).
What is the reasonable amount for overtime meal allowance in 2018/19?
The reasonable overtime meal allowance for 2018/19 is A$30.60.
How are domestic travel allowances structured under the reasonable-amount rules?
Domestic travel allowances cover separate components: accommodation (when staying overnight in commercial establishments), meals (breakfast, lunch, dinner depending on travel times), and incidentals. Reasonable amounts vary depending on factors such as the employee’s salary band and destination.
Do special rules apply for certain workers such as truck drivers?
Yes — for example, there are distinct reasonable meal rates for employee truck drivers under domestic travel allowances.
What are the benefits of using the “reasonable amounts” instead of actual expenses?
If you receive an allowance and claim no more than the reasonable amount, you ordinarily don’t need to provide receipts. This simplifies record-keeping while still complying with the substantiation exception under tax law.
What are the reasonable travel and meal allowances for the 2018–19 tax year, and can I still claim them?
The reasonable travel and meal allowances for the 2018–19 income year are specific ATO-approved amounts I can use to simplify claiming deductions for work-related travel, meals, or incidentals when I’m away from my usual workplace. If I receive an allowance and it matches or is less than the ATO’s reasonable amounts, I don’t need to substantiate every receipt — making the claim process easier. If the allowance exceeds those amounts, I need detailed records to support the extra portion.
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