Expenditure on meals and incidentals while away from home for work purposes may be deductible for individuals. However, a deduction is only available if the expenses meets deductibility, substantiation and incurred tests.
The Commissioner of Taxation does not require substantiation for claims which are below a reasonable allowance amount.
This can provide a simple deduction for individuals who need to make a claim for travel. However, Taxation Ruling TR 2004/6 outlines that the exception from substantiation for travel allowance expenses will only apply where all three of the following criteria are met:
- There is a bona fide travel allowance received.
- The claim for travel expenses does not exceed the reasonable amount listed in the determination.
- The taxpayer has actually incurred the amount of the expense claimed.
If you would like more information on how this impacts you, contact Custom Accounting.