Many business owners regularly pay their employees domestic travel allowances rather than reimbursing them. The ATO has recently released the reasonable travel and overtime meal allowance expense amounts for the 2020-2021 income year Taxation Determination TD 2020/5.
The determination sets out the amounts that the Commissioner considers are reasonable for the substantiation exception for the 2020-2021 income year in relation to claims made for:
· Overtime meal allowance expenses - food and drink in connection with overtime worked and where a meal allowance has been paid under an industrial instrument;
· Domestic travel allowance expenses – accommodation, food and drink, and incidentals that are covered by the allowance;
· Travel allowance expenses for employee truck drivers – food, drink and incidentals that are covered by the allowance; and
· Overseas travel allowance expenses – food, drink and incidentals that are covered by the allowance.
If you'd like to know more about Allowances such as whether they are; included on payment summaries; subject to PAYG Withholding or subject to superannuation guarantee, you may like to read Allowances and reimbursements.
General Advice Warning: The information provided is of a general nature only and has been prepared without taking into account your financial objectives, situation or needs. These should be considered before you act on any information considered in any article and you may want to seek independent professional advice before making a decision.
Liability limited by a scheme approved under Professional Standards Legislation