Travel allowance deductions


The ATO recently issued a decision impact statement, reminding taxpayers that the Administrative Appeals Tribunal (AAT) decision last year, the Gleeson and Commissioner of Taxation [2013] AATA 920, is not a new principal of law.

This was regarding expenses being exempted from being substantiated when incurred by a taxpayer while travelling overnight for work purposes. The AAT discovered that while taxpayers incur food and drink expenses spent during trips away from home, they also receive a bona fide travel allowance to cover those expenses. Hence, while claiming deductions, they are entitled to rely on the exemption from substantiation provision. If an individual does receive a bona fide allowance and relies on the Commissioner’s reasonable amounts for claiming travel expenses, the taxpayer is still expected to demonstrate that expenses have actually been incurred.

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