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TRUCK DRIVERS TAX RETURNS
For the year ended 30 June 2024
TR 2017/D6
Latest truck driver's AAT case
Davy's Case AATA 376 (27 March 2017)
Work related uniforms, protective clothing and laundry
Laundry: You may claim $1 per load up to $150 without receipts.
Protective clothing is generally tax deductible if it is designed to protect:
Many truck drivers claim steel capped boots, uniforms or high visibility shirts & trousers and gloves.
Work Expenses: - Take photos of your receipts and send to Receipt Bank.
Tools
Bedding
Sun Protection & Sun Glasses
Electronic Equipment: Please keep a 28 day diary each year
Mobile Calls
Mobile Data Downloads
Internet
iPad
Laptops
Log books, stationery & pens
Truck Licence
Truck Washing & Cleaning
Refrigerator & Cooking Stoves
Union Fees
RECORDS - Please use Receipt Bank
You may claim $200 worth of items costing < $10 without receipts.
REASONABLE OVERNIGHT TRAVEL ALLOWANCE FOR TRUCK
DRIVERS
Davy's Case AATA 376 (27 March 2017)
Para 66. "Thirdly, regardless of whether a taxpayer relies on s 900-50 of ITAA 97, they may nevertheless be required to show the basis for determining the amount of the claim, that the expense was actually incurred, and that it was for work-related purpose. In other words, as is stated on s. 900-15 of ITAA 97, the taxpayer may need to produce evidence that the claim qualifies as a deduction under the general provision in s. 8-1 of ITAA 97."
Taxation Determination TD 2015/14 Para 3
Expenses claimed must have been incurred and be an allowable deduction - The payment of an allowance does not of itself allow a deduction to be claimed.
Taxation Ruling TR 2004/6 Para 15
If the taxpayer relies on the exception from substantiation, they may still be required to show, the basis for determining the amount of their claim, that the expense was actually incurred, and that it was for work-related purposes. What counts as evidence for a claim subject to the substantiation exception will vary according to individual circumstances and the nature of the expenses.
Taxation Ruling TR 95/18 Para 12
The receipt of an allowance does not automatically entitle a truck driver to a deduction. It is best to keep all receipts.
CONDITIONS - OVERNIGHT TRAVEL ALLOWANCE
1. You must be paid an overnight travel allowance not an inconvenience or other allowance -
A 'bona fide travel allowance' is an amount that could reasonably be expected to cover accommodation, or meals or expenses incidental to travel. This does not require that the amount paid by the employer must equate dollar for dollar to the employee's actual expenditure. However there must be relativity between the quantum of the travel allowance and the purpose for which it is said to be paid. A token amount, or a general payment, is not a bona fide travel allowance. In this context the words 'cover' and 'covered' refer to the nature of the expenses for which the allowance is provided, that is the subject matter to be dealt with by the allowance paid, namely accommodation and applicable meal expenses. (See Re McIntosh and F.C. of T. [2001] AATA 702; 47 ATR 1242).
For accommodation, meal and incidental expenses to be considered under the exception from substantiation, the meal allowance must be a bona fide travel allowance (refer to TR 2004/6) paid or payable under a law of the Commonwealth or of a State or Territory, or an award, order, determination or industrial agreement in force under such a law (section 900-60 of the ITAA 1997).
2. You will need a letter from your employer stating that the payment is a bona fide travel allowance paid for meals, the amount of the allowance and the number of allowances paid during the year.
3. You must be an employee (not a sole trader or partnership).
4. You must be away from your ordinary residence. You must sleep away from your home.
5. You must not stay in one town for more than 21 consecutive days (Roads and Traffic Authority of NSW case; MT 2030).
6. You should try to prove a regular pattern of expenditure and have diary, receipts or bank statements for 3 months. Try to keep as many receipts as possible. Take photos of your receipts using your mobile.
7. Your claims have to be consistent with the employees occupation and type of expense.
It is best to keep every receipt.
ATO reasonable overnight travel allowances for meals
As per Tax Determination
FAIR WORK AUSTRALIA ACT - 13 13 94
ROAD TRUCK DRIVERS MODERN AWARDS
ENTERPRISE BARGAINING AGREEMENTS
Which award is yours or do you have an Enterprise Bargaining
Agreement?
Check
with Fair Work Australia Truck Driver Modern Awards 13 13 94
Under the RSR System, the Road Safety Remuneration Tribunal (the RSRT) can make decisions about pay and related conditions in the road transport industry for road transport drivers. These decisions are called road safety remuneration orders (orders). RSRT can also make arbitration orders when dealing with a dispute.
Road Transport
(Long Distance Operations) Award 2010
This Fair Work Commission consolidated modern award
incorporates all amendments up to and including 18 June 2015 (PR566710),18 June
2015 (PR566849) and 26 June 2015 (PR568050).
(c) Travelling allowance
[14.2(c)—Living away from home allowance renamed by
PR551128 ppc 08Jul14]
[14.2(c)(i) varied by PR998149,PR523022,PR536825,PR551748,PR566849
ppc 01Jul15]
(i) An employee engaged in ordinary
travelling on duty or on work on which the employee is unable to
return home and takes their major rest break under the applicable
driving hours regulations away from home must be paid $38.43 per
occasion. This will not be payable where an employee is provided
with suitable accommodation away from the vehicle.
(ii)
In exceptional circumstances,where amounts greater than those specified are claimed, an employee will need to demonstrate why the claim is necessary and gain approval from a representative of the employer. Such approval will not be unreasonably withheld.
Historically in some Enterprise Bargaining Agreements negotiated between Employer's Human Resources Departments and Unions there is no mention of Bone Fide Travel Allowances for overnight meals. Instead there are only references to inconvience or accommodation allowances.
e.g. In the above Fair Work Australia legislation for Overnight Truck Drivers there is only reference to accommodation allowance and no mention of meals. This is outdated as most drivers sleep in their cabs.
This means that technically you may fail the definition of Bona Fide Travel allowance for meals and cannot use the ATO Overnight Travel Allowance Commissioners Rates and records substantiation rules for meals. You then must rely on actual receipts for 12 months instead of 3 months.
In practice the ATO is accepting that in these cases accommodation allowances are extended to meals and therefore you may use the commissioner's rate provided that you can show a regular pattern of expenditure using actual receipts or other records for a 3 month period. My point is that you can see how technical this can get.
These Road Transport Awards have not kept up with the times as it is too onerous to expect employees to keep records for 900 meals. The Fair Work Australia legislation needs to be amended to reflect modern times. Lobby your member, union and employers to change these definitions.
Read your EBAs carefully and specifically review the definitions of all allowances that you receive. It must state that the allowance is for overnight meals, accommodation and incidentals.
7.1 Notwithstanding any other provision of this award,an employer and an individual employee may agree to vary the application of certain terms of this award to meet the genuine individual needs of the employer and the individual employee. The terms the employer and the individual employee may agree to vary the application of are those concerning:
(a) arrangements for when work is performed;
(b) overtime rates;
(c) penalty rates;
(d) allowances;and
(e) leave loading.
This is importance because if you
negotiate with your employer to be paid differently e.g. by the km
it must incorporate all of the above pay rates, allowances and
loadings.
You must keep all receipts and bank statements.
OVERNIGHT TRAVEL EXPENSES WITH NO TRAVEL ALLOWANCE
PAID TO TRUCK DRIVERS YOU MUST KEEPALL RECEIPTS AND
BANK STATEMENTS
TR 2017/D6
Employee truck drivers who do not receive a travel allowance and
truck drivers who are owner-drivers must substantiate all travel
expenses with written evidence (refer to paragraphs 76 to 80 of
TR 2004/6).
PLEASE SUMMARIZE THE FOLLOWING:
Accommodation if not in the truck
Meals
Water & Drinks
Caffeine drinks - Coffee, mothers, red bulls, etc.
Snacks
DAY TIME TRUCK DRIVERS
REASONABLE OVERTIME MEAL ALLOWANCE YOU MUST KEEP
ALL RECEIPTS
MOTOR VEHICLE TAX DEDUCTIONS TO PICK UP A TRUCK
TO DO OVERNIGHT WORK
Travel to and from work is usually not a tax deduction.
Some exceptions are:
Carrying bulky equipment with no secure lockup at work.
Bulkiness of equipment is determined by size & weight.
Many overnight truck drivers carry a heavy tool box 35 kg plus spare oil & water and overnight equipment like a 15 kg refrigerator, stove with gas bottle, food, sleeping bag, blanket, clothes and toiletries.
Uniforms and Protective Clothing
DISCLAIMER
We have clients from the following locations:
Brisbane, Gold Coast, Sydney, Newcastle, Sunshine Coast, Cairns, Canberra,
Melbourne, Adelaide, Perth, Darwin.
Other:
Brisbane, Albion, New Farm, Teneriffe, Newstead, Windsor,
Wilston, Bowen Hills, Wooloowin, Herston, Lutwyche, Hamilton, Eagle
Farm, Gordon Park, Fortitude Valley, Clayfield, Ascot, Hendra,
Nundah.
Morayfield, Burpengary, Caboolture, Bellmere, Wamuran, Narangba,
North Lakes, Mango Hill, Kallangur, Dakabin, Deception Bay, Bribie
Island, Elimbah, Kippa-Ring.
The information provided in the above document is not intended to
be, nor should it be construed as tax advice. Any specific
recommendation for a client can only be done after their individual
circumstances have been determined by David Douglas Accountants.
We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and
sole traders.
Liability limited by a scheme approved under Professional Standards legislation