The ATO has released a discussion paper dealing with the exception to the normal substantiation rules for travel allowance expenses.
Taxpayers generally need to ensure that they have appropriate documentation to support the deductions being claimed, however, the rules are relaxed in cases where employees receive a bona fide travel allowance from their employer.
The ATO has noticed an increasing disparity between the travel allowances paid to employees and deductions they claim for their travel expenses (i.e. accommodation, meal and incidental expenses). As a result, there has been an increase in the checking of these claims.
The ATO recognises that taxpayers and tax advisors find the ATO's guidance in this area confusing. The increase in cases dealing with this area certainly suggests that further clarity is required. The ATO is exploring ways to improve guidance and administrative practices in this area and to ensure that changes to typical work practices are taken into account.
To find out more, talk to your accountant on 9957 4033 if you're a business owner who provides travel allowances or you claim travel expenses for work.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.