Episode 11: Accounting for travel

In this episode of BK Pod, Kellie Powell, Leanne Lewis and Darren Hagarty shine a spotlight on one of the most misunderstood areas in bookkeeping—accounting for travel expenses. As the end of financial year approaches, we unpack the nuances that bookkeepers need to understand when it comes to travel-related claims and entitlements.They begin by clarifying the difference between a travel allowance and a living away from home allowance (LAFHA)—two similar-sounding concepts with very different tax treatments. Darren explains when a travel allowance is considered "reasonable" by the ATO and why this matters when substantiating claims.The discussion also touches on broader travel-related issues, including:What qualifies as business travel (and how to prove it)When a travel diary is requiredHow poor documentation can jeopardize tax-free treatmentAnd why distinguishing between “travel” and “relocation” is essential