The ATO advises that it will generally accept that an employee is travelling (overnight) on work,
where all of the following circumstances apply:
- The employer pays an allowance to the employee or pays or reimburses accommodation
and meals expenses for the employee
- The payment or reimbursement is not part of a salary packaging arrangement
- Where an allowance is paid, the employer includes the allowance on the employee’s income
statement and withholds tax, where appropriate.
- The employee does not work on a fly-in fly-out (‘FIFO’) or drive-in drive-out (‘DIDO’) basis, as
described in S31E of the FBT Act
- The employee is away from their normal residence, at the same work location, for work
purposes, for a period that is:
a. no more than 21 calendar days at a time continuously (‘21-day requirement’); and
b. no more than 90 calendar days, in total, in the FBT year (‘90-day requirement’).
- The employee must return to their normal residence as soon as practicable when their
period away ends.
- The employer obtains and retains the relevant documentation to substantiate the fact that
all of the above requirements are met.