Travel Allowance Expense Claims – Tribunal Rejects ATO’s Strict Approach

A recent decision by the Administrative Appeals Tribunal (AAT) has clarified how taxpayers can substantiate travel allowance deductions. The case involved a taxpayer who received a travel allowance from their employer and claimed deductions for meal expenses while working away from home. Despite the allowance being within the ATO’s “reasonable amounts,” the ATO denied the deduction due to missing receipts.

The AAT overturned the ATO's decision, finding the taxpayer provided sufficient alternative evidence, such as bank statements and a work diary, to prove the expenses were real.

✅ What This Means for You

If you receive a travel allowance and want to claim deductions for expenses like meals and accommodation:

1. You don’t always need receipts

If your claim is within the ATO’s reasonable allowance limits, you may rely on alternative records, such as:

• Bank or credit card statements
• Travel itineraries or rosters
• Work diaries or timesheets
• Employer travel logs

2. You must still prove you incurred the expense

Even if receipts aren’t required, you still need to show that you actually spent the money. Claims cannot be made for unspent travel allowances.

3. ATO guidance ≠ the law

The AAT made clear that the ATO’s public rulings and administrative practices must align with tax legislation. If your evidence is reasonable and credible, your claim should be accepted—even without every receipt.

✍️ Practical Tips

• Keep records like bank statements, calendar entries, and accommodation bookings whenever possible.
• Track your travel days and link expenses to work-related travel.
• Don’t overclaim—stick within the ATO’s published reasonable amounts to benefit from simplified substantiation.
• Consult your tax agent if you're unsure how to support your claim.

🧾 ATO’s "Reasonable Amounts" – 2024–25*

*Always check the ATO’s official guidance for the most up-to-date rates.

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