Taxation Determination

TD 2012/17

Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2012-13 income year?

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This publication provides you with the following level of protection:

This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953.

A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes.

If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.


1. This Determination sets out the amounts that the Commissioner considers are reasonable ( reasonable amounts ) for the substantiation exception in Subdivision 900-B of the Income Tax Assessment Act 1997 (ITAA 1997) for the 2012-13 income year in relation to claims made for:

overtime meal allowance expenses - for food and drink in connection with overtime worked and where a meal allowance has been paid under an industrial instrument;
domestic travel allowance expenses - accommodation, food and drink, and incidentals that are covered by the allowance;
travel allowance expenses for employee truck drivers - food, drink and incidentals that are covered by the allowance; and
overseas travel allowance expenses - food, drink and incidentals that are covered by the allowance.

Taxation Ruling TR 2004/6

2. This Determination should be read together with Taxation Ruling TR 2004/6 Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses which explains the substantiation exception and the way in which these expenses are able to be claimed. It is important to remember that when 'setting the reasonable amount ... the Commissioner does not determine the amount of allowance an employee should receive or an employer should pay their employees. The amount of an allowance is a matter to be determined between the payer and the payee'. (Refer to paragraph 33 of TR 2004/6.)

3. Key points from TR 2004/6 about claiming travel allowance expenses and overtime meal allowance expenses are:

Claim must be allowable - A deduction claim cannot exceed the amount actually incurred for work-related purposes. The payment of an allowance does not of itself allow a deduction to be claimed.
Allowance must be paid - The substantiation exception only applies if the employee is paid an overtime meal allowance or a travel allowance. The allowance must have an identifiable connection with the nature of the expense covered.
For travel allowance expenses - The employee must sleep away from home.
Substantiation exception - Where the amount claimed is no more than the applicable reasonable amount, substantiation of the claim with written evidence is not required.
Claims in excess of reasonable amounts - If the amount claimed is more than the reasonable amount, the whole claim must be substantiated, not just the excess.
Verification of reasonable claims - In appropriate cases, where the substantiation exception is relied on, the employee may still be required to show:

how they worked out their claim;
an entitlement to a deduction (for example that work-related travel was undertaken);
a bona fide travel allowance was paid; and
if accommodation is claimed, that commercial accommodation was used.

The nature and degree of evidence will depend on the circumstances: for example the circumstances under which the employer pays allowances, the occupation of the employee, and the total amount of allowances received and claimed during the year by the employee.
Tax return treatment - Where a travel or overtime meal allowance which does not exceed the reasonable amounts is not shown on the payment summary, and it has been fully spent on deductible expenses, neither the allowances nor the expenses need be shown on the employee's tax return. If an amount less than the allowance has been spent, the income tax return must include the allowance and the expense claimed. Whenever a claim is made for overtime meal or travel allowance expenses the allowance must also be included in the tax return.

Reasonable amount for overtime meal allowance expenses

4. For overtime meal expenses to be considered under the exception from substantiation, the meal allowance must be a bona fide meal allowance (refer to paragraph 87 of TR 2004/6) paid or payable under a law of the Commonwealth or of a State or Territory, or an award, order, determination or industrial agreement in force under such a law (section 900-60 of the ITAA 1997).

5. For the 2012-13 income year the reasonable amount for overtime meal allowance expenses is $27.10.

Reasonable amounts for domestic travel allowance expenses

Types of expenses

6. This Determination shows reasonable amounts for travel allowance expenses. The reasonable amounts are given for:

accommodation at daily rates (for domestic travel only);
meals (showing breakfast, lunch and dinner); and
deductible expenses incidental to travel.

Travel destinations

7. These amounts are shown for the following travel destination:

each Australian State and Territory capital city;
certain specified high cost regional and country centres (at individual rates);
other specified regional and country centres (at a common rate);
all other regional and country centres (at a common rate); and
specified overseas locations (selected countries).

Type of accommodation

8. The accommodation rates shown for domestic travel apply only for stays in commercial establishments like hotels, motels and serviced apartments. If a different type of accommodation is used the rates do not apply.

Meal expenses

9. The reasonable amount for meals depends on the period and time of travel. That is, the rates only apply to meals (that is breakfast, lunch, dinner) that fall within the time of day from the commencement of travel to the end of travel covered by the allowance.

Incidental expenses

10. The reasonable amount applies in full to each day of travel covered by the allowance, without the need to apportion for any part-day travel on the first and last day.

Reasonable amount for 2012-13

11. The reasonable amounts for daily travel allowance expenses, according to salary levels and destinations, for the 2012-13 income year are shown in Tables 1 to 6 as follows.

Table 1: Employee's annual salary - $104,870 or below
Place Accomm .
Food and drink
B'fast 24.35
Lunch 27.35
Dinner 46.70
Adelaide 157 98.40 17.85 273.25
Brisbane 201 98.40 17.85 317.25
Canberra 165 98.40 17.85 281.25
Darwin 189 98.40 17.85 305.25
Hobart 132 98.40 17.85 248.25
Melbourne 173 98.40 17.85 289.25
Perth 233 98.40 17.85 349.25
Sydney 183 98.40 17.85 299.25
High cost country centres See Table 4 98.40 17.85 Variable - see Table 4
Tier 2 country centres (see Table 5) 127 B'fast 21.80
Lunch 24.90
Dinner 42.90
17.85 234.45
Other country centres 106 B'fast 21.80
Lunch 24.90
Dinner 42.90
17.85 213.45

Table 2: Employee's annual salary - $104,871 - $186,520
Place Accomm .
Food and drink
B'fast 26.50
Lunch 37.50
Dinner 52.55
Adelaide 186 116.55 25.50 328.05
Brisbane 233 116.55 25.50 375.05
Canberra 220 116.55 25.50 362.05
Darwin 264 116.55 25.50 406.05
Hobart 176 116.55 25.50 318.05
Melbourne 228 116.55 25.50 370.05
Perth 239 116.55 25.50 381.05
Sydney 229 116.55 25.50 371.05
High cost country centres See Table 4 116.55 25.50 Variable - see Table 4
Tier 2 country centres (see Table 5) 152 B'fast 24.35
Lunch 24.90
Dinner 48.50
25.50 275.25
Other country centres 127 B'fast 24.35
Lunch 24.90
Dinner 48.50
25.50 250.25

Table 3: Employee's annual salary - $186,521 and above
Place Accomm .
Food and drink
B'fast 31.30
Lunch 44.25
Dinner 62.00
Adelaide 209 137.55 25.50 372.05
Brisbane 236 137.55 25.50 399.05
Canberra 232 137.55 25.50 395.05
Darwin 284 137.55 25.50 447.05
Hobart 195 137.55 25.50 358.05
Melbourne 265 137.55 25.50 428.05
Perth 309 137.55 25.50 472.05
Sydney 265 137.55 25.50 428.05
Country centres $190, or the relevant amount in Table 4 if higher 137.55 25.50 Variable - see Table 4 if applicable

Table 4: High cost country centres - accommodation expenses
Country centre $ Country centre $
Alice Springs (NT) 150 Horn Island (QLD) 169
Bourke (NSW) 165 Jabiru (NT) 192
Bright (VIC) 136 Kalgoorlie (WA) 159
Broome (WA) 210 Karratha (WA) 347
Bunbury (WA) 155 Katherine (NT) 134
Burnie (TAS) 135 Kununurra (WA) 202
Cairns (QLD) 140 Mackay (QLD) 141
Carnarvon (WA) 151 Mount Isa (QLD) 160
Castlemaine (VIC) 133 Newcastle (NSW) 143
Chinchilla (QLD) 133 Newman (WA) 195
Christmas Island (WA) 150 Norfolk Island 190
Dampier (WA) 175 Port Hedland (WA) 259
Derby (WA) 182 Port Pirie (SA) 140
Echuca (VIC) 123 Thursday Island (QLD) 180
Emerald (QLD) 141 Wagga Wagga (NSW) 134
Exmouth (WA) 255 Weipa (QLD) 138
Geelong (VIC) 136 Wilpena-Pound (SA) 167
Geraldton (WA) 135 Wollongong (NSW) 136
Gladstone (QLD) 187 Whyalla (SA) 145
Gold Coast (QLD) 149 Yulara (NT) 244
Halls Creek (WA) 165

Table 5: Tier 2 country centres
Country centre Country centre
Albany (WA) Kingaroy (QLD)
Ararat (VIC) Launceston (TAS)
Armidale (NSW) Maitland (NSW)
Bairnsdale (VIC) Mildura (VIC)
Ballarat (VIC) Mount Gambier (SA)
Bathurst (NSW) Mudgee (NSW)
Bendigo (VIC) Muswellbrook (NSW)
Bordertown (SA) Naracoorte (SA)
Broken Hill (NSW) Orange (NSW)
Bundaberg (QLD) Port Augusta (SA)
Castlemaine (VIC) Portland (VIC)
Ceduna (SA) Port Lincoln (SA)
Cocos (Keeling) Islands Port Macquarie (NSW)
Coffs Harbour (NSW) Queanbeyan (NSW)
Cooma (NSW) Renmark (SA)
Devonport (TAS) Rockhampton (QLD)
Dalby (QLD) Roma (QLD)
Dubbo (NSW) Seymour (VIC)
Esperance (WA) Swan Hill (VIC)
Gosford (NSW) Tamworth (NSW)
Goulburn (NSW) Tennant Creek (NT)
Hamilton (VIC) Toowoomba (QLD)
Hervey Bay (QLD) Townsville (QLD)
Horsham (VIC) Tumut (NSW)
Innisfail (QLD) Warrnambool (VIC)
Kadina (SA) Wonthaggi (VIC)

Reasonable travel allowance expense claims for employee truck drivers

12. Amounts claimed up to the food and drink component only of the reasonable domestic daily travel allowance amounts for 'other country centres' are considered to be reasonable for meal expenses of employee truck drivers who have received a travel allowance and who are required to sleep away from home . For the 2012-13 income year, the relevant amounts are:

Table 6: Employee truck drivers [1]
Salary range Food and drink
$104,870 and below B'fast Lunch Dinner $21.80 $24.90 $42.90 $89.60 per day
$104,871 and above B'fast Lunch Dinner $24.35 $24.90 $48.50
$97.75 per day

Office holders covered by the Remuneration Tribunal

13. Daily domestic travel allowance expense claims made by office holders covered by the Remuneration Tribunal are considered to be reasonable amounts if they do not exceed the rate of allowances set by the Remuneration Tribunal for that office holder.

Federal Members of Parliament

14. The travel allowances paid to Federal Members of Parliament and Federal Parliamentary Secretaries, under the arrangements that commenced on 14 April 1998, are considered reasonable amounts for the recipients of those allowances. This includes the Capital City and Canberra travel allowance rates for domestic travel, having regard to the circumstances under which those allowances are paid.

Reasonable amounts for overseas travel allowance expenses

15. The reasonable amounts for overseas travel expenses are shown in Schedule 1 to this Determination. Table 1 of Schedule 1 sets out the cost group to which a country has been allocated. Table 2 of Schedule 1 sets out the reasonable amount for meal expenses and incidental travel expenses for each cost group for specified employee salary ranges.

16. If the employee travels to a country that is not shown in Table 1 of Schedule 1 the employee can use the reasonable amount for Cost Group 1 in Table 2 for the relevant salary range.

17. Employees travelling to two or more countries in the same day may use the Cost Group of the country that is in the higher cost group in determining their reasonable allowances amount.

Example - calculation of reasonable daily overseas travel expense amounts

18. An employee travels to Germany on business for two weeks and is paid a travel allowance of $350 per day ($150 for meals and incidentals and $200 for accommodation). The employee's annual salary is $91,000. The reasonable daily overseas travel allowance expense claim is calculated as follows:

Schedule 1 Table 1 lists Germany as Cost Group 5.
Using Table 2, at a salary of $91,000 per year, the reasonable overseas travel allowance amount for meals and incidental expenses for Cost Group 5 (which covers Germany) is $225.

19. The employee claims a deduction for meals and incidental expenses actually incurred of $180 per day. As the employee is claiming a deduction that is less than the reasonable amount of $225 per day, the employee does not need to keep written evidence to substantiate expenditure on meals and incidental expenses. The employee is required, however, to maintain a travel record and to keep receipts or other documentary evidence to substantiate accommodation expenses.

Date of effect

20. This Determination applies to the 2012-13 income year only. However, the Determination will not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of the Determination (refer to paragraphs 75 and 76 of Taxation Ruling TR 2006/10).

Commissioner of Taxation
27 June 2012

Appendix 1


Table 1: Table of Countries

If a country is not listed in Table 1 use the reasonable amount in Table 2 for Cost Group 1.

For an explanation of Cost Groups see Table 2: Reasonable amounts by cost groups.

Country Cost Group Country Cost Group
Albania 1 Estonia 4
Algeria 4 Ethiopia 1
Angola 6 Fiji 2
Antigua and Barbuda 4 Finland 5
Argentina 1 France 5
Austria 5 Gabon 5
Azerbaijan 4 Gambia 2
Bahamas 5 Georgia 2
Bahrain 3 Germany 5
Bangladesh 2 Ghana 3
Barbados 5 Gibraltar 4
Belgium 5 Greece 4
Bermuda 5 Guatemala 2
Bolivia 1 Guyana 2
Bosnia 2 Hungary 3
Brazil 5 Iceland 5
Brunei 2 India 3
Bulgaria 3 Indonesia 3
Burkina Faso 3 Iran 2
Cambodia 1 Irish Republic 5
Cameroon 4 Israel 5
Canada 4 Italy 5
Chile 2 Jamaica 3
China (includes Macau & Hong Kong) 4 Japan 5
Colombia 4 Jordan 4
Congo Democratic Republic 3 Kazakhstan 3
Cook Islands 4 Kenya 3
Costa Rica 1 Korea Republic 5
Cote D'Ivoire 5 Kuwait 4
Croatia 4 Laos 1
Cuba 2 Latvia 4
Cyprus 4 Lebanon 4
Czech Republic 4 Libya 3
Denmark 6 Lithuania 3
Dominican Republic 3 Luxembourg 5
East Timor 2 Macedonia 1
Ecuador 2 Malawi 2
Egypt 2 Malaysia 3
El Salvador 1 Mali 4
Eritrea 1 Malta 4
Mauritius 3 Senegal 3
Mexico 1 Serbia 2
Monaco 6 Sierra Leone 2
Morocco 3 Singapore 5
Mozambique 1 Slovakia 4
Myanmar 3 Slovenia 3
Namibia 3 Solomon Islands 2
Nepal 2 South Africa 2
Netherlands 5 Spain 4
New Caledonia 5 Sri Lanka 1
New Zealand 4 Sudan 2
Nicaragua 1 Surinam 2
Nigeria 4 Sweden 5
Norway 6 Switzerland 6
Oman 5 Syria 3
Pakistan 1 Taiwan 3
Panama 2 Tanzania 2
Papua New Guinea 4 Thailand 3
Paraguay 1 Tonga 3
Peru 3 Trinidad and Tobago 4
Philippines 3 Tunisia 2
Poland 4 Turkey 4
Portugal 4 Uganda 1
Puerto Rico 3 Ukraine 3
Qatar 4 United Arab Emirates 4
Romania 3 United Kingdom 5
Russia 5 United States of America 4
Rwanda 2 Uruguay 2
Saint Lucia 3 Vanuatu 4
Saint Vincent 2 Venezuela 5
Samoa 4 Vietnam 1
Saudi Arabia 2 Zambia 3

Table 2: Reasonable amounts by cost groups

Cost Group Salary $ 104,870 and below Salary $ 104,871 to $ 186,520 Salary $ 186,521 and above
Meals Incidentals Total Meals Incidentals Total Meals Incidentals Total
1 $55 $25 $80 $75 $25 $100 $95 $30 $125
2 $85 $30 $115 $110 $35 $145 $140 $40 $180
3 $110 $35 $145 $135 $40 $175 $170 $45 $215
4 $130 $35 $165 $170 $45 $215 $205 $50 $255
5 $185 $40 $225 $230 $50 $280 $285 $60 $345
6 $220 $45 $265 $280 $50 $330 $330 $60 $390

Note: these amounts are determined by the Commissioner solely as the amounts that will be accepted for the exception from the requirement to obtain written evidence for substantiation purposes (refer to paragraph 33 of Taxation Ruling TR 2004/6 ).


For further information on truck drivers refer to paragraphs 72 to 75 of Taxation Ruling TR 2004/6 and Taxation Ruling TR 95/18.

Not previously issued as a draft


ATO references:

ISSN: 1038-8982

Related Rulings/Determinations:

TR 95/18
TR 2004/6
TR 2006/10

Subject References:
accommodation expenses
domestic travel expenses
meal and food expenses
incidental expenses
overseas travel expenses
travel expenses

Legislative References:
ITAA 1997 Subdiv 900-B
ITAA 1997 900-60
TAA 1953

TD 2012/17 history
  Date: Version: Change:
You are here 27 June 2012 Original ruling  
  19 September 2012 Consolidated ruling Addendum
  8 August 2018 Withdrawn