Travel these days are so much easier and frequent for work and business related purpose. A travel allowance is payment to employee to cover for food, drink, accommodation or incidental expenses while they travel away from their home overnight or longer to do their work.
In most situations of claiming other deductions, a taxpayer will be expected to prove the expense with written evidence. However, an exception to substantiate claims applies to travel expenses if the ATO considers the total claimed to be reasonable and to be no more than than the allowance provided. It means that the taxpayer may not be required to prove it in a written for like other deductible work related expenses. To be able to claim this, the taxpayer must still have incurred the expense to claim a deduction. If the taxpayer receive the travel allowance above the reasonable considered amount referred by ATO, the whole deduction will be applied to the general substantiation rules.
It is important to note that regardless of whether you qualify for the substantiation exemption or not you must always keep a valid travel diary for all work and business related travel. Most importantly the main purpose for the trip should be for work and business in order to be qualified for claiming tax deduction.
We have clients frequently asking us the above travel related expenses and deductions. MYC Associates are very familiar with in this area and would love to provide solutions in supporting your business.