{"id":1888,"date":"2025-07-04T08:43:36","date_gmt":"2025-07-03T22:43:36","guid":{"rendered":"https:\/\/www.bantacs.com.au\/Jblog\/?p=1888"},"modified":"2026-02-06T12:24:36","modified_gmt":"2026-02-06T02:24:36","slug":"travel-allowance-substantiation-concession-more-work-than-substantiating","status":"publish","type":"post","link":"https:\/\/www.bantacs.com.au\/Jblog\/travel-allowance-substantiation-concession-more-work-than-substantiating\/","title":{"rendered":"Travel Allowance Substantiation Concession, More Work Than Substantiating"},"content":{"rendered":"
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       Many decades ago the government introduced substantiation concessions for people travelling in their job and receiving a travel allowance.  Basically, if the amount you claim is reasonable you do not need to keep receipts.  Every year the ATO releases a detailed ruling of the amount that it considers reasonable depending on where you are travelling to.  This is created by researching costs in these areas.  Yet, the ATO is now taking the attitude that unless you can prove you have spent that amount you cannot claim it.  Which defeats the purpose of the concession and actually makes the requirement more cumbersome than simply keeping receipts.  The ATO even take it so far as to deny any deduction at all unless you can reach their high benchmark of proof.  Basically, this means the ATO are claiming that while it is clear you travelled away from home overnight for your work you did not need to eat or need accommodation for sleeping!<\/p>\n\n\n\n

What the Law says<\/h2>\n\n\n\n
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Section 900-50(1)
<\/strong>You can deduct a *travel allowance expense for travel within Australia without getting written evidence or keeping travel records if the Commissioner considers reasonable the total of the losses or outgoings you claim for travel covered by the allowance.\u00a0<\/p>\n<\/blockquote>\n\n\n\n

What the ATO Say <\/h2>\n\n\n\n
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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 TD 2024\/3<\/strong><\/p>\n\n\n\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4. The reasonable amounts only provide the maximum amount you can claim without being required to substantiate your expenditure (refer to paragraph 33 of TR 2004\/6). If you rely on the reasonable amounts and we check your tax return, you will still be required to show:<\/p>\n\n\n\n

\u2022\u00a0 that you spent the money in performing your work duties (for example, in travelling away from home overnight on a work trip)<\/p>\n\n\n\n

\u2022  how you worked out your claim (for example, you kept a diary)<\/p>\n\n\n\n

\u2022\u00a0 that you spent the money yourself (for example, using your credit card statement or other banking records) and were not reimbursed (for example, a letter from your employer)<\/p>\n<\/blockquote>\n\n\n\n

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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The ATO\u2019s expectations, in our opinion far exceed the requirements of the law.\u00a0 This year in Shaw\u2019s case https:\/\/www.bantacs.com.au\/Jblog\/a-win-for-employee-truck-driver\/#more-1777<\/a> the Administrative Review Tribunal agreed that the ATO needed to be more realistic and allowed a tax deduction up to the full reasonable amount.\u00a0 The ATO with its huge taxpayer supported funding has simply appealed the case.\u00a0 There are many examples of this tyrannical behaviour by the ATO, which is why we strongly encourage clients to obtain audit insurance.\u00a0<\/p>\n\n\n\n

What we need this year if you are claiming expenses against a travel allowance:<\/strong><\/h2>\n\n\n\n

     Ideally receipts for all expenses then we do not have to worry about the ATO ruling.  But if you are relying on the \u201cconcessions\u201d and have been paid a travel allowance that is appearing on your PAYG summary, please try to obtain as much of the following as possible.<\/p>\n\n\n\n

Diary \u2013 <\/strong>recording every day you where away from home overnight, where you stayed and the times you ate meals.<\/p>\n\n\n\n

Sample Month \u2013 <\/strong>Keep receipts for all your meals and accommodation for at least a month as a representative sample.  From Shaw\u2019s case it appears it is not too late if you have not done this by 30th<\/sup> June.   You can do this now, in the new year and use it as an example of your normal expenses.  So, unless you have changed employment you really have no reason not to do this before you come and see us.<\/p>\n\n\n\n

Letter from Employer \u2013<\/strong> Ask your employer to provide you with a letter stating the following:<\/p>\n\n\n\n