Each year the ATO issues a ruling detailing what it considers a reasonable travel allowance. If you are paid a travel allowance by your employer and don’t claim more than the reasonable amount, you are not required to keep written evidence or travel records.

Nevertheless, an ATO auditor will require you to prove you spent the money and the burden of proof inflicted by ATO auditors on employee taxpayers is so high, you are probably better to keep receipts for all expenses for the whole year.

A new decision by the Administrative Appeals Tribunal has eased the burden on those claiming travel allowances on their tax returns.Credit: Michael Howard

In a recent Administrative Appeals Tribunal (AAT) case, Daniel Shaw, an employee long-distance truck driver, said he had spent more than the ATO’s reasonable amount of $105.75 a day, but on advice of his accountant, only claimed that much so that he would not be required to keep written evidence.

The ATO auditor in this case decided it was not........

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