Travel Allowance and Meal Allowance. Travel allowance, in accordance with the Commissioner of Taxation guidelines, will be paid to employees who are required to travel interstate from time to time and stay away from home overnight. Should an employee not be away from home for the full 24 hour period, an allowance is paid for the meals that would have been consumed whilst away. Travel allowances for overnight stays are paid in accordance with the rates set down by the Commissioner of Taxation and as such the employer is not required to withhold tax on such allowances as the assumption is made that the employee will claim a tax deduction for the same amount. No supporting documentation (ie: receipts) are required to be kept. A meal allowance will be paid where an employee does not have an overnight stay away but is required to travel for the day. Meal allowances are paid for the meals that would have been consumed whilst away and are paid in accordance with the rates set down by the Commissioner of Taxation for Travel allowances. As the Commissioner of Taxation gives no guidance on part day travel allowances, all tax deduction claims are required to be substantiated. It is the employees responsibility to keep the relevant documentation (ie: receipts, or for small amounts, a travel diary) to substantiate their deduction claim. The employer will not withhold tax on these allowances as the assumption is made that the employee will claim a tax deduction for the amounts expended. Both travel and meal allowances are calculated from the scheduled departure time until the time the employee returns to Adelaide Airport and are paid to the employee at the end of each calendar month.
