Keeping on top of allowance rates, including overtime meal allowances, and when these need to be paid, can be difficult. Kylie James, NatRoad HR Advisor has provided some answers to help with some common questions she receives.
What are the current travelling allowance rates and when do they need to be paid?
- Under the Road Transport and Distribution Award 2020, the 2024/25 travelling allowance rate is at least $40.08 per day. This is payable if the employee is unable to return home at night. If suitable accommodation and meals are provided to the employee, the travelling allowance is not payable.
- Under the Road Transport (Long Distance Operations) Award 2020, the 2024/25 travelling allowance rate is $56.28 per occasion. This is paid when the employee is unable to return home and takes their major rest break away from home. If suitable accommodation is provided away from the vehicle, the allowance isn’t payable. There may be times where an employee seeks approval to claim a greater amount. In this case, the employee must demonstrate why the claim is necessary. Approval will not be unreasonably withheld.
Note: Travelling allowance rates may increase at the same time the wage rates increase in July each year.
What are the current overtime meal allowance rates and when do they need to be paid?
- Under the Road Transport and Distribution Award 2020, if an employee is required to work overtime for two continuous hours or more, they must either be supplied with a meal or paid a meal allowance (which is currently $19.81 for 2024/25) for each meal required to be taken. If an employee is required to start work two hours or more prior to their normal starting time, they must also be paid a meal allowance.
Note: The meal allowance rate may increase at the same time the wage rates increase in July each year.
- There is no specific overtime meal allowance entitlement in the Road Transport (Long Distance Operations) Award 2020.
What are the reasonable travel and overtime meal allowance expense amounts for 2024/25?
The ATO updates their advice each financial year and publishes it on their website. You can access the current 2024/25 amounts in the latest ATO advice here: https://www.ato.gov.au/law/view/document?docid=TXD/TD20243/NAT/ATO/00001
Page 9 and 10 of this advice provides specific advice on reasonable amounts for domestic travel expenses for employee truck drivers.
Can employees claim overtime meal expenses as part of their personal tax return?
Employees who work paid overtime and buy a meal during this time may be eligible to claim overtime meal expenses as part of their personal tax return. The ATO provides information for employees on meal allowances and travelling expenses on their website. Employees should seek advice from their tax agent on their specific situation to clarify what they can or cannot claim as part of their personal tax return.
