The ATO have recently issued new rulings on Travel expense for the 2017/18 year. This ruling will severely limit claims of truck drivers.
The ATO has nearly halved the amount of travel expenses a truck driver can claim as tax deductions without having to produce a receipt.
The new ruling means that employee truck drivers who receive a travel allowance can only claim $55.30 per day in travel expenses (but not for accommodation) without having to produce a receipt. [For the 2017 income tax year, the comparative amount was $97.40].
Practically, such a reduction means that a truck driver who was paid a travel allowance could claim, for example $70 per day for 2017 without producing a receipt (under the $97.40).
However, if a truck driver were to claim $70 for such travel expenses in 2018, the taxpayer would only be allowed to claim $70 per day if the truck driver can substantiate the whole amount (i.e. the whole $70 – not just the excess over $55.30).
For further information and expert taxation for truck drivers contact MDK Taxation & Accounting in Ceduna, South Australia.
CONTENT CONTRIBUTION CREDIT: Ben Watson