30/09/2026
🎓 Tax School: Travel allowances aren’t an automatic tax deduction ✈️
Receiving a travel allowance does not mean you can automatically claim the ATO’s published “reasonable amount”.
It’s easy to misunderstand the wording about not needing receipts. You may not need receipts if you meet the conditions, but you must still be able to show you actually incurred eligible expenses and explain your claim.
💡 You must also receive a bona fide travel allowance to use the travel allowance receipt exception.
This means a genuine allowance paid by your employer to cover expenses you are expected to incur during specific overnight work travel. Simply calling a payment a “travel allowance” does not make it eligible. A token payment or an amount included in your ordinary salary does not automatically qualify.
💡 Can you claim more than your employer pays you?
Yes, potentially—but only if you actually spent more on deductible work-related travel expenses.
For example, using illustrative amounts:
• Your employer pays you a $50 meal allowance.
• You spend $75 on eligible meals during overnight work travel.
• Your potential deduction is $75, not an automatic $120 because that is the applicable ATO reasonable amount.
📝 How can you support your claim?
✅ Bank statements: Highlight relevant purchases and note what they were for.
✅ Meal diary: Record the date, location, meal and actual amount spent, including cash purchases.
✅ Travel diary or calendar: Record travel dates, destinations and the work purpose.
✅ Receipts: Take photos and save them—these remain the clearest evidence, even where an exception applies.
✅ Payslips and employer records: Keep details showing the allowance received, what it covers and the work travel it relates to.
Remember, a cash withdrawal alone doesn’t prove what you spent the money on. Also record any meals provided by your employer or included in accommodation.
These rules generally relate to overnight work travel. Everyday meals at your usual workplace are generally private, and different rules apply to overtime meal allowances and living-away-from-home arrangements. Expenses paid directly or reimbursed by your employer cannot also be claimed.
If you don’t receive a qualifying allowance, you may still be entitled to claim eligible travel expenses, but the normal receipt and record-keeping requirements apply.
The ATO’s reasonable amount is a threshold for a record-keeping exception—not a standard deduction everyone receives.
If you’re unsure, please check with me before including a claim in your tax return. 😊
You may not need to keep written evidence or detailed records for travel expense claims within the reasonable amounts.