Reasonable travel expenses...

[hedge]

My company I work for is located in Central QLD and I live in sydney. I was given the opportunity to drive up and they would pay for all reasonable travel expenses. Soon I need to drive back.

Would a $150/night hotel be blowing it? As i tried to save heaps on the way up and had quite bad sleeps due to noise/music late at night. Would need around 3-4 nights accom.

So my trip all up would be in the region of $800. I am sure Fully Flexible flights would cost more.

FWIW, the company put me up in accom which was around $150/night and all expenses paid (roomservice/food etc) for the inductions. But I dont want to rip them off, but would like to have an enjoyable trip home without having to search for the cheapest place to stay (im a student).

 

[dosborn]

I deal with sort of thing a bit, I would say $180 - $220. Another way is to stick with 3.5 - 4 star properties. No one should complain about that?

 

[hedge]

I deal with sort of thing a bit, I would say $180 - $220. Another way is to stick with 3.5 - 4 star properties. No one should complain about that?

Is that per night or...?

Sorry I am quite new to this...

I guess it comes with experience. My first expense claim hasn't been submitted yet so I have no idea what they are like.

 

[dosborn]

Yes, per night. Depending on exact locations I would consider $180 - $200 per night reasonable for accom and breakfast. $220 with dinner.

 

[Dave Noble]

I would look at the ATOs table of reasonable travel expenses and go with that (TD2009/15 )

For 2009-2010 , the table is at http://law.ato.gov.au/atolaw/view.htm?docid="TXD/TD200915/NAT/ATO/00001"

Dave

 

[notmensa]

Just had my post disappear because it contained a link! I'll try again...

The ATO has guidelines on "reasonable allowances" for travel expenses. Go to the ATO website < ato . gov . au > (without spaces or brackets), search for Tax Determination TD 2008/18. This contains the rates for 2008 / 2009.

For those of us earning under $90 000 pa, the accommodation allowance usually translates to 3 - 3.5 star motels. The reviews on the 'Trip Advisor' website are worth reading to help you find decent places in regional / rural areas.

 

[Mal]

"reasonable" depends on the company. For example, some companies do not believe alcohol should be paid for as part of meals, others believe that people should be in their own rooms, others force people to share. etc etc.

So it really does depend on the company and their culture.

As a guideline, the ATO does produce a listing of "reasonable travel expenses" for various cities etc.

[already discussed above ! ]

 

[hedge]

Thanks Dave - very useful website!

Thanks dosborn! (now wont feel bad staying in something better than the formule 1 motel i stayed in - gross)

One more thing, I assume it's okay to charge meals to the company?

Mal - I understand. I am travelling by myself. I would not charge alcohol to the company, as it's not a necessary expense. The company is a multinational mining company, so I hope its okay.

 

[notmensa]

It's reasonable to charge meals and incidentals associated with the trip to the company if the travel is required. I think it's unlikely that a beer or glass of wine as part of a dinner bill will be questioned.

Just a note on providing evidence & receipts for meals - make sure your receipts show that the account was settled. The itemised account or bill you get initially shows the amount owed, but doesn't show that the bill was paid. My employer (state gov't) requires us to either need to attach a credit card receipt as proof, or get a new Tax Invoice showing a final balance of zero if we pay cash.

 

[munitalP]

My employees get paid $180 per night TAX free unless staying in a major centre, then I pay the hotels and they get $86 TAX free.

This is line with ATO requirements. Keep in mind if you don't meet ATO expectations, this is claimable at TAX time (yep, really!)

PM me if you want a bit more info

Mr!

 

[albatross710]

We pay people at the tax office rates and find that they can live quite nicely and if they eat sensibly (ie not three course meals 3 times a day) then they usually come out ahead.

 

[straitman]

Mal - I understand. I am travelling by myself. I would not charge alcohol to the company, as it's not a necessary expense. The company is a multinational mining company, so I hope its okay.

If the company is a multinational mining company as you say I am sure that they have a policy for this and probably everything else you can think of.

I have worked for 27 years for a multinational oil company and that is how they do business. This goes right down to having preferred hotels in each city of significance, with negotiated rates. Invariably the accommodation they use is very good. In Melbourne for example they use Quay West apartments, Crown, and Melbourne Airport Hilton. Alcohol is accepted provided the individual is sensible.

It is all accounted and audited quite closely but so long as you do the right thing there are no issues.

A side line though is that the highest rate of sackings in the company, worldwide, is from inappropriate use of the corporate Amex card :!: :shock:

 

[Sprucegoose]

Yes, per night. Depending on exact locations I would consider $180 - $200 per night reasonable for accom and breakfast. $220 with dinner.

never go backwards or set precedents you will regret later!!!

Of course reasonable is what someone will sign off on!!!!

What indusrty are you? mining? go for it.

cheers

SPRUCE

 

[NYCguy]

Reading this thread I have come to realise that my employer has either been very generous, or very foolish!

 

[Mal]

Reading this thread I have come to realise that my employer has either been very generous, or very foolish!

'Reasonable' in many cases is what you negotiate with your employer.

Somehow I doubt you're at the lower end of payscales according to your employer. Hence 'Reasonable' differs from others quite a bit I assume.

It was only recently (for example, and I'm not accusing you of this type of perk) that the UK cracked down on adult entertainment as a claimable expense.

So it really is a combination of what the employer allows, and the taxman allows that makes up what is claimable.

 

[Dave Noble]

So it really is a combination of what the employer allows, and the taxman allows that makes up what is claimable.

No. There is not a limit by the tax office on what can be claimed.

What the tax office defines is an option where an amount can be claimed without substantiation.

If an employee is paid all actual expenses then there is nothing that the employee can claim ; if an employee is paid a per diem *and* actually spends more than that , then the employee can claim a deduction for the difference without substantiation as long as expenses are within the reasonable limits. If they are more than this, they still can be claimed but all needs to be substantiated.

If a company was vague enough to only specify reasonable expenses, then I would be using the ATO's guidelines as the basis of what can be spent

Dave

 

[Mal]

No. There is not a limit by the tax office on what can be claimed.

What the tax office defines is an option where an amount can be claimed without substantiation.

Indeed. I can't see where I posted differently?

Expenses are between an employee, the ATO and the Employer. Some Employers may decide to grant 5 star hotels, learjets and other perks. Others may define sharing with colleagues and 'Bates Motel' type of accommodation. That is for the employee and employer to negotiate.

The ATO may step in if there is Fringe Benefits Tax (or other taxes) applicable to the benefits given.

 

[Sprucegoose]

Reading this thread I have come to realise that my employer has either been very generous, or very foolish!

Your employer is also entitled to be both!!!!

SPRUCE :shock:

 

[Mal P]

If an employee is paid all actual expenses then there is nothing that the employee can claim ; if an employee is paid a per diem *and* actually spends more than that , then the employee can claim a deduction for the difference without substantiation as long as expenses are within the reasonable limits. If they are more than this, they still can be claimed but all needs to be substantiated.

Really? So if I get paid $50 per diem a night for meals in a given city, and for my salary bracket the ATO states the reasonable food/drink and incidentals allowance for that city is $123.50 then I can claim the difference i.e. $73.50 per night as a straight tax deduction, and not have to provide receipts?

Anyone done this? That could be a fair whack of cash I get back at the end of the financial year!

 

[Keith009]

I simply sought approval from my employer on my first work trip. It also helped that both the CEO and Chairman were going to be travelling with me and actually gave me guidelines on what they're willing to spend. S$255/night at the Four Seasons Singapore thanks to a contact there was v well received.

We don't have a stipend system for incidental expenses incurred such as meals and transport, just expense claims. I was going to pay for alcohol myself but my employer simply paid it all anyway.