What are the allowances for domestic or overseas travel and accommodation abroad?
The allowances for domestic or overseas travel and accommodation abroad are deductible expense allowances that exceed the reasonable allowances amount set by the Australian Taxation Office (ATO). These allowances are provided to employees for business purposes when they are required to sleep away from home. They are not meant to reimburse actual expenses but rather to provide a reasonable estimate to cover costs such as meals, accommodation, and incidental expenses.
For reporting purposes, all overseas accommodation allowances should be treated as “no measures defined by the ATO” for PAYG withholding (PAYGW) and super guarantee purposes. They should be reported as OD (Other Allowances) under the Other Allowance Type Description G1 General.
It’s important to note that travel allowances for private purposes are non-deductible expenses for PAYGW and super guarantee purposes. They should be reported as OD (Other Allowances) under the Other Allowance Type Description: ND Non-deductible.
Note: Services Australia categorises these allowances as Expense Allowance.
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