Addendum to reasonable travel and overtime meal allowances determination
Posted by Northadvisory on October 27, 2017
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
T: 02 9984 7774
T: 02 9984 7774