Private ruling: Income-Salary & wages income-Employee allowances-Travel allowances
Date of advice: 17 July 2015
Published: July 2015
Ruling period: Financial year ending 30 June 20XX | Financial year ending 30 June 20YY
Date scheme commenced: 1 January 20XX

Ruling: Q1: What is the reasonable overseas travel allowance amount applicable to staff travelling for work related purposes to a country that is not listed in Taxation Determination TD 2014/19 for the financial year ending 30 June 20XX? | A1: Cost Group Salary $112,610 and below Salary $112,611 to $200,290 Salary $200,291 and above Meals Incidentals Total Meals Incidentals Total Meals Incidentals Total 1 $60 $25 $85 $75 $25 $100 $95 $30 $125 | Q2: What is the reasonable overseas travel allowance amount applicable to staff travelling for work related purposes to a country that is not listed in Taxation Determination TD 2015/14 for the financial year ending 30 June 20YY? | A2: Cost Group Salary $115,450 and below Salary $115,451 to $205,300 Salary $205,301 and above Meals Incidentals Total Meals Incidentals Total Meals Incidentals Total 1 $60 $25 $85 $75 $25 $100 $95 $30 $125

Relevant facts and circumstances: The taxpayer has contracted with an Australian Government Department to provide education services in a Country for the period from 1 January 20XX to 31 December 20XX. The taxpayer has researched Taxation Determination TD 2014/19 which lists a range of countries with corresponding cost groups and reasonable travel allowance values. The Country is not on the list.

Relevant legislative provisions: Section 900-55 of the Income Tax Assessment Act 1997 (ITAA 1997)

Reasons for decision: Detailed Reasoning - Question 1: What is the reasonable overseas travel allowance amount applicable to staff travelling for work related purposes to a country that is not listed Taxation Determination TD 2014/19 for the financial year ending 30 June 20XX? | Detailed Reasoning - Detailed reasoning: Under subsection 900-55(1) of ITAA 1997, an employee can deduct a travel allowance expense for travel outside Australia without getting written evidence or keeping travel records, provided the Commissioner considers the total of the amount claimed in relation to the travel allowance reasonable. Taxation Determination TD 2014/19 (TD 2014/19) sets out the amounts that the Commissioner considers are reasonable for the substantiation exception in section 900-55 of ITAA 1997 for the 2014-15 income year in relation to claims made for overseas travel allowance expenses - food and drink and incidentals that are covered by the allowance. Paragraph 15 of TD 2014/19 refers to Schedule 1, containing two tables: Table 1 allocates countries to cost groups while Table 2 sets out reasonable amounts for meal expenses and incidental travel expenses for each cost group. Paragraph 16 of TR 2014/19 prompts the employees travelling to countries that are not on the list in Table 1 of Schedule 1 to use the reasonable amounts for Cost Group 1 in Table 2 for the relevant salary range. The reasonable daily overseas travel expense amounts for travel to the Country for the financial year ending 30 June 20XX are as follows: | Detailed Reasoning - 1: $60 $25 $85 $75 $25 $100 $95 $30 $125 Please note that the reasonable overseas travel expenses above do not include any amounts for accommodation. As per subsection 900-55(1) of ITAA 1997, employees are still required to get written evidence for accommodation expenses. As per subsection 900-55(3), for overseas travel covered by a travel allowance an employee is also required to keep travel records if they are away from their ordinary residence for 6 or more nights in a row. Section 900-150 of ITAA 1997 described travel records as "a diary or similar document" specifying: a) The nature of the activity; b) The day and approximate time when it began; c) How long it lasted; d) Where you engaged in it. Each entry must be made in English before the end of the activity or as soon as practicable afterwards. | Detailed Reasoning - Question 2: What is the reasonable overseas travel allowance amount applicable to staff travelling for work related purposes to a country that is not listed in Taxation Determination TD 2015/14 for the financial year ending 30 June 20YY? | Detailed Reasoning - Detailed reasoning: Under subsection 900-55(1) of ITAA 1997, an employee can deduct a travel allowance expense for travel outside Australia without getting written evidence or keeping travel records, provided the Commissioner considers the total of the amount claimed in relation to the travel allowance reasonable. Taxation Determination TD 2015/14 (TD 2015/14) sets out the amounts that the Commissioner considers are reasonable for the substantiation exception in section 900-55 of ITAA 1997 for the 20XX-YY income year in relation to claims made for overseas travel allowance expenses - food and drink and incidentals that are covered by the allowance. Paragraph 15 of TD 2015/14 refers to Schedule 1, containing two tables: Table 1 allocates countries to cost groups while Table 2 sets out reasonable amounts for meal expenses and incidental travel expenses for each cost group. Paragraph 16 of TR 2015/14 prompts the employees travelling to countries that are not on the list in Table 1 of Schedule 1 to use the reasonable amounts for Cost Group 1 in Table 2 for the relevant salary range. The reasonable daily overseas travel expense amounts for travel to the Country for the financial year ending 30 June 20YY are as follows: | Detailed Reasoning - 1: $60 $25 $85 $75 $25 $100 $95 $30 $125 Please note that the reasonable overseas travel expenses above do not include any amounts for accommodation. As per subsection 900-55(1) of ITAA 1997, employees are still required to get written evidence for accommodation expenses. As per subsection 900-55(3), for overseas travel covered by a travel allowance an employee is also required to keep travel records if they are away from their ordinary residence for 6 or more nights in a row. Section 900-150 of ITAA 1997 described travel records as "a diary or similar document" specifying: a) The nature of the activity; b) The day and approximate time when it began; c) How long it lasted; d) Where you engaged in it. Each entry must be made in English before the end of the activity or as soon as practicable afterwards.