sprite_green

G'day.

I have been searching for the last hour but can't find it.

I remember reading on here that there is a daily tax allowance given (both for hotel and meals, etc.) for each overnight stay. If you are re-imbursed for less than this tax allowance then you can claim this back through the tax return.

Please tell me I'm not dreaming.

TIA.

odyssey

http://www.kreston.com.au/reasonable..._for_2010.aspx

I cant find the post now either but it refers to this. I do have a copy of the original post at work somewhere so will try to respond

sprite_green

What a star! Just wanted to make sure the tax agent was aware of this (have heard that they don't always know about it).

Karma sent!

spalen

it was me who posted it - search for threads started by me - I think it was called "If you travel for work"

Its on the ATO website http://law.ato.gov.au/atolaw/view.ht.../NAT/ATO/00001

search for "ATO Per Diem" on the googlemachine will always find it.

bcworld

This is the 2009/10 version of the above link:

http://law.ato.gov.au/atolaw/view.ht...3&pn=RDB:::RDB

I'm still confused though. So I'm in Sydney at the moment and my employer gives me a $60 per diem. My accommodation is paid for already. The ruling says the reasonable amount I am entitled to is $106. I probably actually spend about $25-30 on food.

Does this mean I can enter something on my tax return? Or do I only enter something if I spend more than the reasonable allowance?

spalen

For tax purposes - you claim 106$ - 60$ = 46$ , you receive back your marginal tax (highest rate of tax) on the 46$ (so 23$ if you pay 50% Tax).

You do not need receipts nor to prove that you spent it. Dont muck about doing the hotels etc - just the daily meal/perdiem allowances.

sprite_green

Thanks Spalen - really, really appreciate this.

spalen

And... best of all....

You can go back the last FOUR years !!!! ;-)

You pay about 25$ fee to 'adjust' your previous year tax return and you can claim this back for the last 4 years.... Good luck....

bcworld

Nice one, thanks! I'm fairly certain that although I claimed quite a few per diems last year they weren't listed on my group certificate - does that sound right? I reckon I'd have to trawl through old expense claims.

spalen

I dont have them listed on mine either - I write to my expense dept each year and they send me an excel file of all my expenses - then I do sort/search for Perdiem in there.

sprite_green

Why do you reckon its not worth looking at hotels? Too much hassle, or is there some contention with the ATO there?

spalen

I was advised that on the hotels you have to show the amount you paid etc and show that you were out of pocket - since your employer is likely to pay it all its slightly dodgy ground.

I dont know - thats just the way the guys who do it here at work do it.

bcworld

I have to say if it all works as is being described it's a massive rort!

Take next month - I'll be staying in a serviced apartment so if I choose the cost to feed myself need not be any more than if I was at home. But still i'll get handed about $1300 tax free for the trouble.

THEN I'll claim over $1000 as a tax deduction on top anyway! Madness.

Is there an annual limit to all this - I note my company policy is to reduce the per diem to $30 after 60 days - not clear if that is per assignment or per year though.

spalen

You are absolutely correct. Its like a bonus. I couldnt believe the first time someone told me about it. it was >10K$ back for me.

Its not a rort ;-) its what the govt employees get and its allowable tax claim.

I did 100+ nights away last year -it adds up. There is no annual limit. You need to have records - but that can be a diary. Dont screw around wiht it I know people who have been audited - so its important that you actually did travel.

Just look on it as all part of the balancing of taxation. If your accountant wont recognise it - switch accountants - H+R block the cheapo crappy ones do it for me and have done for past 4 yrs.

lonndongeek

Are you sure that you only spend $25-30 on food? If so, you can't claim anything. Think back, didn't you really spend $106/night on food? ;-)