MEL-SYD weekly commute - talk me out of it

[medhead]

Cheers, thanks for the help.


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[JohnM]

I've read through this thread with great interest. Fascinating, to say the least, for someone of my generation seeing my kids and PartnerJohnM's kids and their friends handling this brave new world. Always upsides and downsides, I guess, but they just seem so amplified these days.

Just tremendous to see how fellow AFFer's have opened up so freely with their thoughts and (sometimes difficult) experiences to help others make choices and decisions. No amount of going to psychologists could have bettered this.

Somehow, I think my life as a retired SFSC is oh so easy...

 

[serfty]

Cheers, thanks for the help. ...

With regard to the ATO's defined reasonable expenses limits, the employee still needs to have spent the allowance, otherwise it becomes "income" - it's just that any spending up to the reasonable limits does not require substantiation.

I used to have to receipt all incidentals and tally them - a bit of a pain for a $5 purchase. Even more of one for small O/S purchases. Now with the influx of receipt on heat sensitive paper which can fade after a few months, it's getting worse.

Note that the if the employee is away for 6 or more consecutive nights they still need to provide a travel record.

To Reiterate, even though the ATO provides a minimum amount for unsubstantiated claims, the actual expenditure claimed must still have occurred.

 

[SeatBackForward]

* You will find that employers will probably make you stay back late because you have "no family to go home to". Don't fall for this excuse. Try to leave the office at reasonable hours or you will burn yourself out.

Great first post ncairns!

The above point is a particular bugbear of mine. The concept that you are away from home therefore should just work and do nothing else. I've even heard "We paid so much for you to fly and stay here, so you shouldn't mind working more"..at which point my reply was "would you like me to go back right now?"..which of course changed their tune.

 

[medhead]

With regard to the ATO's defined reasonable expenses limits, the employee still needs to have spent the allowance, otherwise it becomes "income" - it's just that any spending up to the reasonable limits does not require substantiation.

I used to have to receipt all incidentals and tally them - a bit of a pain for a $5 purchase. Even more of one for small O/S purchases. Now with the influx of receipt on heat sensitive paper which can fade after a few months, it's getting worse.

Note that the if the employee is away for 6 or more consecutive nights they still need to provide a travel record.

To Reiterate, even though the ATO provides a minimum amount for unsubstantiated claims, the actual expenditure claimed must still have occurred.

Timely reminder thanks. I'm certainly aware that one need to actually spend the money and have appropriate proof in order to claim it.


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[markis10]

Note that the if the employee is away for 6 or more consecutive nights they still need to provide a travel record.

Not if its domestic travel and the employee receives a travel allowance where they are claiming the reasonable amount or less, if travelling overseas written evidence of accommodation costs needs to be kept regardless of the duration for those being paid said allowance. It should also be noted that if you are getting allowances that are expected to be fully deductable, you can apply to have your PAYG witholding varied so that tax is not withheld on these payments, so you get use of the money rather than using as a defacto savings facility that has poor interest rates!

Guide to claiming deductions

 

[serfty]

Not if its domestic travel and the employee receives a travel allowance where they are claiming the reasonable amount or less, if travelling overseas written evidence of accommodation costs needs to be kept regardless of the duration for those being paid said allowance. It should also be noted that if you are getting allowances that are expected to be fully deductable, you can apply to have your PAYG witholding varied so that tax is not withheld on these payments, so you get use of the money rather than using as a defacto savings facility that has poor interest rates!

Guide to claiming deductions

I never posted "provide proof" - the "reasonable Benefit limit" provides for not having to substantiate the expenditure.

What this means is that basically for expense claims under the specified limits, the ATO will basically take the employee's "word".

In regard to Overseas travel, accommodation costs must indeed be substantiated.

Again I'll note that for trips where an employee has 5 or less 'nights' away, under 900-20 of the "INCOME TAX ASSESSMENT ACT 1997" no travel record (e.g. diary) is required. (SECTION 900-20 - Keeping travel records)

 

[markis10]

Again I'll note that for trips where an employee has 5 or less 'nights' away, under 900-20 of the "INCOME TAX ASSESSMENT ACT 1997" no travel record (e.g. diary) is required. (SECTION 900-20 - Keeping travel records)

I think you misread my post, a travel record is not required for trips domestically regardless of their duration if you are paid a travel allowance and the claims are not above the RBLs, which is an exception to your quote

Note that the if the employee is away for 6 or more consecutive nights they still need to provide a travel record.

After reading your post I thought I was in trouble having regular trips domestically for two weeks and not keeping a diary! Put simply, if you are on said allowance and keep the claims below the RBLs, no records are required regardless of the trip duration if you are purely domestic travel.

 

[serfty]

...

After reading your post I thought I was in trouble having regular trips domestically for two weeks and not keeping a diary! Put simply, if you are on said allowance and keep the claims below the RBLs, no records are required regardless of the trip duration if you are purely domestic travel.

Apologies, that is indeed the case as I knew it to be, I did not disclose that properly.

I note the 2011-12 link as posted upthread by Joy6328 is less enlightening than I have seen in those on this topic for prior years.

 

[amaroo]

I commuted weekly between Sunshine Coast & Sydney for nearly 4 years - I'm married with two young kids and found it very tough.

For the first 7 months I lived in a CBD hotel and only ate home cooked meals on the weekends........put on about 10kgs, drank too much & apparently turned into something that rhymes with banker.

Leased a unit that became my weekday home, started cooking my own meals & switched from going to restaurants & pubs to the gym & pool.

Completed the contract & very happily emptied the unit and came home......was offered another contract however, declined.

For some I'm sure it would appeal as a good life......for me it was a means to an end.

 

[clifford]

I commuted weekly between Sunshine Coast & Sydney for nearly 4 years - I'm married with two young kids and found it very tough.

For the first 7 months I lived in a CBD hotel and only ate home cooked meals on the weekends........put on about 10kgs, drank too much & apparently turned into something that rhymes with banker.

Leased a unit that became my weekday home, started cooking my own meals & switched from going to restaurants & pubs to the gym & pool.

Completed the contract & very happily emptied the unit and came home......was offered another contract however, declined.

For some I'm sure it would appeal as a good life......for me it was a means to an end.

Very interesting.

I did something similar a few years ago, but signed a lease on a townhouse in Sydney before I moved.

Way to go.

 

[travelislife]

I have been reading this thread with interest. I work for a large engineering consulting firm in Melbourne but since last October have been spending most of my time working in Olympic Dam. I am currently contracted to work here until then end of the financial year.

I am currently operating on a 10 day on 4 day off roster with the travel in the 10 days. This is definitely at my limit and I am not sure if I will continue it if I am offered to at the end of this period. It is hard being away from my girlfriend for that period of time even though we have done the long distance thing quite regularly (having met in the states). I have joined a local footy club in town to get me away from the camp and try and stay fit and meet a few people outside work.

I have been very confused about the allowance side of it. I don't spend a cent whilst here other than a few beers in the wet mess. My company pays me a daily amount for working away from the office (not enough!). Super is taken out of this amount and I am taxed on it at my standard PAYG rate as it is treated as income. I have tried talking to my HR department about tax implications but they are no help at all. I have no idea if I am entitled to claim anything at tax time against Living away from home.

Obviously I probably need to get an accountant to look at my situation but any advice on here is great or if you can point me in the right direction.

 

[Flashback]

Obviously I probably need to get an accountant to look at my situation but any advice on here is great or if you can point me in the right direction.

I would say this is your only option as everyone's situation is different and your accountant really is the best person to advise.

 

[medhead]

I have been reading this thread with interest. I work for a large engineering consulting firm in Melbourne but since last October have been spending most of my time working in Olympic Dam. I am currently contracted to work here until then end of the financial year.

I am currently operating on a 10 day on 4 day off roster with the travel in the 10 days. This is definitely at my limit and I am not sure if I will continue it if I am offered to at the end of this period. It is hard being away from my girlfriend for that period of time even though we have done the long distance thing quite regularly (having met in the states). I have joined a local footy club in town to get me away from the camp and try and stay fit and meet a few people outside work.

let me guess, they've put you in camp one? It might be worth having a hit of golf after work sometimes. That used to be pretty popular during daylight savings. It's pretty hard up there if you don't know any locals and I'm not too sure how things are these days.


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[travelislife]

In the main Olympic Village camp that you can walk in to from the airport. Yea I had a hit of golf with a few guys back in January, not bad the old course, nice and green. Went to the speedway last Saturday night and headed over to Andamooka Sunday which was interesting to say the least! So yeah try and get out and about and throw myself in to a few things, pretty wrecked after getting up nice and early though!

 

[ncairns]

I have been very confused about the allowance side of it. I don't spend a cent whilst here other than a few beers in the wet mess. My company pays me a daily amount for working away from the office (not enough!). Super is taken out of this amount and I am taxed on it at my standard PAYG rate as it is treated as income. I have tried talking to my HR department about tax implications but they are no help at all. I have no idea if I am entitled to claim anything at tax time against Living away from home.

Obviously I probably need to get an accountant to look at my situation but any advice on here is great or if you can point me in the right direction.

Claims for travel expenses depends on how the your allowance is paid. If the allowance is paid as a taxable allowance (i.e. it is included in your taxable income and tax is withheld from it), then you should be able to claim the reasonable amounts for meals and incidentals as per the details in the link provided by Joy6328 in an earlier post. If the allowance is paid as an exempt Fringe Benefit (i.e. not included in your taxable income and no tax withheld) then there are no further claims to be made.

Since you mentioned that you pay tax and super on this allowance then the former may apply and you should be able to claim for meals and incidentals. To do this your allowance must be recorded in the income section of your tax return and the reasonable meal and incidental amounts should be recorded in Section D2 work related travel expenses in the deductions section of your tax return. If the allowance you receive is less than the reasonable amounts prescribed by the ATO, then the net effect will be a tax deduction.

You also mentioned you work at Olympic Dam so I am assuming that you are provided with barrack-style accommodation by your mining company and that you are not staying in commercial or hotel-like establishments. If this is the case then you will not be able to claim for additional accommodation expenses.

Of course, and this was mentioned in previous posts, you must actually incur the expense. Therefore if you only spend a few dollars on beer you probably can't claim the deduction. An accountant will be able to advise you on your situation.

 

[travelislife]

Thanks a lot for the information ncairns. Yes am definitely taxed on it like normal income. From your explanation above it doesn't seem I will be able to claim anything unfortunately as I do not spend any money on accommodation or food whilst here as it is all provided for. Will definitely discuss with an accountant but don't like my chances unfortunately. Thanks again for the tips.

 

[JohnK]

Interesting thread.

I have been commuting SYD-BNE for ~4 years and even though the travel wears me down it has been a good experience.

Some of the pros

- I have a steady job and income which allows me to continue travelling. I can easily live without working but it would mean no overseas travel.
- Reasonably flexible employer. There is no such thing as flexi days or working from home (for me anyway) but as long as I turn up to work on Friday I can leave whenever I want. Which means if I get my work done through the week and come in to work at 9:00am on Friday and leave at 10:00am then I can head out to airport early.
- The company allows employees to purchase an additional 2 weeks annual leave which means I have 6 weeks annual leave + with my current arrangement another ~3 weeks unpaid leave spread out throughout the year. I will be looking to increase unpaid leave to ~6 weeks a year so I can spend some more weekends in SYD
- I am lucky I chose my current apartment. It is fully furnished and as some people know I live in a hotel and my apartment is basically a private hotel room. I have a fridge, small washing machine, cook top and includes free Foxtel and electricity. The apartment only costs me $290/week. I hardly ever go out to drink (apart from regular drinks nights) and I always eat at home to save money.

Some of the cons

- Living alone.
- Missing friends and family. I am not married but it would still be nice to be home more often.
- Paying for airfares although if managed properly can still work out relatively cheaply. Avoid Jetstar and Tiger at all costs.
- Delays. I cannot stress how depressing this can become. There is almost nothing worse than looking forward to getting home at 9:00pm and not actually arriving until 11:00pm or later. Just as well though I have not been left behind in BNE on a Friday night yet.

I am starting to feel the effects of this particular commute. Not sure if I can keep going for too much longer. Time will tell....

 

[medhead]

In the main Olympic Village camp that you can walk in to from the airport. Yea I had a hit of golf with a few guys back in January, not bad the old course, nice and green. Went to the speedway last Saturday night and headed over to Andamooka Sunday which was interesting to say the least! So yeah try and get out and about and throw myself in to a few things, pretty wrecked after getting up nice and early though!

Yep that's camp one - absolute pits being out there. Hope you had the pelican schnitzel at the Tuckerbox. Sounds like you have weekends off? You could always get a plot over at andamooka.


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[medhead]

Thanks a lot for the information ncairns. Yes am definitely taxed on it like normal income. From your explanation above it doesn't seem I will be able to claim anything unfortunately as I do not spend any money on accommodation or food whilst here as it is all provided for. Will definitely discuss with an accountant but don't like my chances unfortunately. Thanks again for the tips.

The other thing to check is the special area zone rebate. My memory is a bit hazy but it is/was available if you lived in the area more than X days per year, I think being more than 50% of the year.


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