1012831568362 | Legal database

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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1012831568362

Date of advice: 17 July 2015

Ruling

Subject: Income-Salary & wages income-Employee allowances-Travel allowances

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 in Taxation Determination TD 2014/19 for the financial year ending 30 June 20XX?

Answer


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

Question 2

Answer


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

This ruling applies for the following periods:

Financial year ending 30 June 20XX

Financial year ending 30 June 20YY

The scheme commences on:

1 January 20XX

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

Issue 1

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

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:


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

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.

Question 2

Detailed reasoning

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:


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