Client: My client travels a lot for work as an executive regional chef. Their employer covers their accommodation costs, but they have to pay for their own meals. Can they claim meal expenses based on the ATO's reasonable meal amounts, even if their payment summary doesn't show any travel allowance?
Advisor: Yes, they can claim, but there are a few things to consider:
First, the allowance they get must be included in their income, even if it's not on their payment summary. If it's not included, they can't claim a deduction.
Second, they can only claim the actual amount they spent on meals, not the ATO's reasonable meal amount. If what they spent is less than what the ATO allows, they don't need receipts. But if they spent more, they need to show proof.
This is an important issue the ATO is watching closely. Many people make mistakes by automatically claiming the ATO's allowance even if they spent less. So, it's important to make sure your client gets it right.
Got questions? Reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment on our live calendar.
