Private ruling: Income Tax - Deductions - Travel
Date of advice: 22 January 2020
Published: March 2020
Ruling period: Financial year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you entitled to a deduction for overseas work related meal and incidental expenses incurredup to the Commissioner's reasonable allowance amounts, without substantiation when you receive a genuine bona fide travel allowance? | A1: Yes, provided that your allowance is included in your assessable income. Based on the information provided, the expenses you incurred for work related meals and incidentals were more than your allowance received but less than the Commissioner's reasonable amount. You have kept a travel record and have an invoice from the hotel detailing some meals and incidentals incurred. You have also kept a record of your daily expenses. Therefore, you are entitled to a deduction for your meals and incidental expenses, provided they are not private in nature and you include your allowance in your assessable income.

Relevant facts and circumstances: You are employed. You attended a course overseas for a period longer than 6 nights. You were not required to take leave for the course. Your employer provided you with a genuine non-taxable cash allowance for meals and incidentals. You have evidence of your allowance received. You used your own money to cover any expenses over the cash allowance received. Your total daily expenditure for work related meals and incidentals did not exceed the Commissioner's reasonable amount set out in Taxation Determination TD 2018/11. You have kept a record of your daily expenses incurred for meals, drinks, groceries and laundry. You have evidence of your room charges in an invoice from the overseas hotel, which shows some meals and laundry expenses incurred. You have kept a travel diary detailing your time overseas.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 division 900