A travel meal allowance is a specific amount of money provided to employees to cover the cost of meals and incidental expenses incurred while traveling for work purposes. The allowance is intended to ensure that employees are not personally out-of-pocket for necessary sustenance while on work-related travel.
The purpose of a travel meal allowance is to offset the additional expenses employees may face when they are required to be away from their usual place of work and away from home. These expenses typically include meals and other incidental costs such as snacks or refreshments.
The amount of the meal allowance can vary depending on the employer’s policy or the guidelines set by the tax authority in a particular jurisdiction. In Australia, for example, the Australian Taxation Office (ATO) sets daily meal allowance rates that are considered tax-free up to certain limits. If the actual meal expenses exceed the allowance, the excess amount may be eligible for tax deductions, provided that the necessary substantiation requirements are met.
It’s important to note that the specific rules and regulations regarding travel meal allowances can differ between countries and may be subject to change. Therefore, it’s advisable to consult with a tax professional or refer to the official guidelines provided by the relevant tax authority in your jurisdiction to understand the specific requirements and limits associated with travel meal allowances.