You can claim a deduction for the full amount of your meal and incidental expenses without keeping all your records if:
- you receive a travel allowance that could reasonably be expected to cover your meals and expenses incidental to the travel (a token amount you receive as a travel allowance is not accepted as reasonably covering such costs), and
- your meal and incidental expenses are equal to or less than the reasonable allowance amount.
However, we may ask you to explain how you worked out the amount you claimed.
We set the reasonable allowance amount for your circumstances in an annual taxation determination that explains:
- when you don't need evidence of your expenses
- the way in which you can claim them.
Many truck drivers do not receive a travel allowance and will have to keep records of their meal and incidental expenses to support their claims.
|
You claim your travel expenses at item D2 Work-related travel expenses on your tax return.
|
Types of records
Written evidence
Written evidence can be:
- invoices, receipts or other documents showing your travel expense and travel allowance details. If it is too difficult to get a receipt for a meal you purchased - for example, if you purchase a meal from a vending machine - you can keep diary entries as your proof of purchase
- receipts or other documents (such as diary entries) for air, bus, train, tram and taxi fares, bridge and road tolls, parking and car hire fees.
Travel diary
A travel diary is a document that shows the dates, places, times and duration of your activities and travel. Each diary entry must show the date you incurred each expense, the name of the supplier and the amount and type of expense.
Example 7
Steve is a truck driver who must transport goods to other states. His trips keep him away from home for several days at a time. While on the road Steve normally has a cooked breakfast and a substantial evening meal at a roadhouse. For lunch, Steve buys drinks and snacks from vendors who do not supply receipts.
Steve should obtain receipts for his breakfasts and evening meals as it is easy for him to do so from the roadhouses at which he eats. However, Steve can make diary entries for his lunch expenses as it is difficult for him to obtain receipts from the vendors.
If you received a travel allowance and your claim does not exceed the reasonable allowance amount
You do not have to show the travel allowance on your tax return if you:
- spent the entire allowance on your meals, and
- are not claiming a deduction for the meals.
Otherwise, you must show the allowance on your return.
If you receive a travel allowance and your claim does not exceed the reasonable allowance amount, you do not have to keep records of your expenses.
Example 8
Connor drives trucks for a busy company. Because he mainly drives long distance trips, he spends about 208 days away from home each income year. He also receives a travel allowance from his employer that reasonably covers the expected cost of his meals and other incidentals. However, since he sleeps in the cab of his truck, he doesn't receive any allowance for accommodation expenses.
Connor spends more than his travel allowance allows, but less than the reasonable allowance amount. Because of this, Connor can claim a deduction for meal expenses he incurred without keeping records of those expenses. However, he cannot claim any accommodation expenses because he didn't incur any.
Example 9
Dennis travels from Adelaide to Mt Gambier to deliver some freight that just arrived from China. He is away from home for one night. His employer pays him a travel allowance for meals and incidentals.
The travel allowance Dennis receives is less than the reasonable allowance amount but is likely to cover his expected costs. Dennis spends all of the allowance on his expenses. The allowance was not shown on Dennis' payment summary.
As Dennis spends the entire allowance on expenses for which he is eligible to claim a deduction, he does not have to show the allowance on his tax return if he doesn't claim the deduction.
If you received a travel allowance and your claim exceeds the reasonable allowance amount
The following table explains the records you must keep when you receive a travel allowance and your claim exceeds the reasonable allowance amount.
|
|
Domestic travel
|
Written evidence
|
Travel diary
|
Travel less than 6 nights in a row
|
Yes
|
No
|
Travel 6 or more nights in a row
|
Yes
|
Yes
|
|
If the amount you are claiming exceeds the reasonable allowance amount, you must keep records to show the full amount of your claim, not just the amount over the limit.
|
Example 10
Brenda travels from Adelaide to Broken Hill to deliver some freight that just arrived from China. She is away from home for two nights. Her employer pays a travel allowance for meals and incidentals.
The travel allowance Brenda receives is more than the reasonable allowance amount. Brenda spends all of the travel allowance on her expenses.
Because the allowance Brenda receives is more than the reasonable allowance amount, she must include the allowance on her tax return. Brenda must keep receipts if she wants to claim more than the reasonable allowance amount.
If your travel allowance is not shown on your payment summary
The following table explains the records you must keep when you receive a travel allowance that is not shown on your payment summary and you are claiming a deduction for your meal and incidental travel expenses.
|
|
Domestic travel
|
Written evidence
|
Travel diary
|
Travel less than 6 nights in a row
|
Yes
|
No
|
Travel 6 or more nights in a row
|
Yes
|
Yes
|
These records include receipts or other documents showing the costs you incurred for meals and incidentals.
Example 11
Patrick's employer pays Patrick a cents per kilometre rate for the kilometres he travels for his work as an interstate truck driver. For overnight travel, his employer pays him a higher cents per kilometre rate.
Because Patrick does not receive an allowance that could reasonably be expected to cover meals or expenses incidental to his travel, Patrick must keep records for all his expenses.
If your trip is extended and you do not receive an allowance for the extra nights you are away for work
Example 12
Andrew receives an allowance to cover his meals and incidentals for a three night trip. Due to bad weather, the roads are flooded and Andrew is away for a total of five nights. His employer does not pay an allowance or reimburse him for the extra two nights he is away for work.
Because Andrew does not receive an allowance for the extra two nights he was out on the job, he can only claim a deduction for the extra expenses he incurs if he keeps records of the expenses that were not covered by his allowance.
Sections within Long-haul drivers
Last Modified: Tuesday, 29 June 2010