Sales and marketing managers - claiming work-related expenses
Keeping records of your overnight travel expenses
Expenses for which you do not have to keep records
You can claim a deduction for the full amount of your overnight travel expenses without keeping all your records if you meet both of the following conditions:
you receive a travel allowance that could reasonably be expected to cover your accommodation and/or meals and/or expenses incidental to travel. Remember, a token amount paid as a travel allowance is not accepted as reasonably covering such costs
your overnight travel expenses are equal to or less than the reasonable allowance amount we set.
We set the reasonable allowance amount for your circumstances in an annual taxation determination, which explains:
when you do not need evidence of your expenses
the way in which you can claim your overnight travel expenses.
If the allowance is not shown on your payment summary and was not more than the reasonable allowance amount, you do not have to show it on your tax return as long as you:
have spent the entire allowance on deductible expenses
are not claiming the deduction.
If you do claim a deduction we may ask you to explain how you worked out the amount you claimed.
The following tables explain what records you need if you are claiming domestic or overseas travel expenses for accommodation, food, drink or incidentals.
If you do not receive a travel allowance:
Domestic travel
Overseas travel
Written evidence
Travel diary
Written evidence
Travel diary
Travel less than 6 nights in a row
Yes
No
Yes
No
Travel 6 or more nights in a row
Yes
Yes
Yes
Yes
If you received a travel allowance and your claim does not exceed the reasonable allowance amount:
Domestic travel
Overseas travel
Written evidence
Travel diary
Written evidence
Travel diary
Travel less than 6 nights in a row
No
No
No
No
Travel 6 or more nights in a row
No
No
No
Yes
If you received a travel allowance and your claim exceeds the reasonable allowance amount:
Domestic travel
Overseas travel
Written evidence
Travel diary
Written evidence
Travel diary
Travel less than 6 nights in a row
Yes
No
Yes
No
Travel 6 or more nights in a row
Yes
Yes
Yes
Yes
Example 4
Michelle is a sales manager who travels from Brisbane to Melbourne to participate in a corporate planning seminar. She is away from home for two nights. Her employer pays her a travel allowance of $110 per night for accommodation, meals and incidentals and includes this on her payment summary. This amount is less than the reasonable allowance amount. Michelle’s overnight travel expenses exceed her allowance.
Michelle must include her travel allowance in her assessable income on her tax return as it is shown on her payment summary. She can claim a deduction for the overnight travel expenses she incurred without providing receipts or other written evidence, as long as her claim does not exceed the reasonable allowance amount. Should she wish to claim an amount in excess of the reasonable allowance amount, she will need to provide written evidence for all her expenses.
Sections within Work-related overnight travel expenses
Subscribe
