The principle purpose of the Combined Business
& Private Travel Policy is to ensure the University complies
with Fringe Benefits Tax legislation. It has been based on the
current interpretation of Fringe Benefits Tax legislation and
independent professional tax advice.
In interpreting the policy and making a determination
as to whether a particular day is considered to be business
or private, the underlying principle outlined below should be
kept in mind:
| Q. I have to travel on Sunday to be able to attend
my conference first thing Monday morning. Is this considered
to be a business day or a private day? |
A. If it is necessary to travel on Sunday, due to flight
availability or an early start, then it would be considered
a business day.
|
| Q. I have a conference in Sydney commencing on Monday
and finishing on Friday. I would like to leave on the Saturday
before and return on the following Sunday. What are the
implications? |
A. Private days total 4 (2 on either side) and the
business days total 5. Under the Combined Business &
Private Travel Policy, the private days would be considered
to be incidental to University business travel. Accordingly
the University would fund the full amount of the airfare
and other travel costs (including accommodation, meals
and incidentals) relating to the business days.
The employee must personally meet travel costs (including
accommodation, meals and incidentals) relating to the
private days.
A travel diary would need to be completed for the entire
period as the travel exceeds 5 nights.
|
| Q. I have a two-day course in Western Australia and
would like to have one week's annual leave after the course.
What are the implications? |
A. The number of private days (7) exceeds the number
of business days (2). Under the Combined Business &
Private Travel Policy, the private travel is considered
to be more than incidental to University business travel.
Accordingly, the employee would need to reimburse the
University for 50% of the airfare.
The University would fund other travel
costs (including accommodation, meals and incidentals)
relating to the business days.
The employee must personally meet travel
costs (including accommodation, meals and incidentals)
relating to the private days.
A travel diary would need to be completed
for the entire period as the travel exceeds 5 nights.
|
| Q. I have to travel to Malaysia to teach for 5 days.
I will have a further 2 business days travelling. I would
like to take 5 days leave on the end for sightseeing. The
Combined Business & Private Travel Policy states that
I can have up to 6 days private travel. Therefore the University
will fully fund my airfare. Is this correct? |
A. No. The policy states that you can have up to 3
private days before the business days and up to 3 private
days after the business days. The days must be split
pre and post the business days. They cannot be combined.
Therefore you would need to reimburse the University
for 50% of the airfare.
The University would fund 100% of other
travel costs (including accommodation, meals and incidentals)
relating to the business days.
You must personally meet travel costs
(including accommodation, meals and incidentals) relating
to the private days.
A travel diary would need to be completed
for the entire period as the travel exceeds 5 nights.
|
| Q. I am travelling interstate to two conferences; one
commences on Monday and finishes on Wednesday. The next
conference commences on the following Monday. Are the days
in-between the conferences business or private? |
A. This would need to be reviewed by your Head of Budget
Centre and a determination made as to whether the days
between conferences are considered to be unavoidable
and that it is not cost effective for you to return
from the first conference and travel to the second conference
the following week.
The key issue to be kept in mind is the underlying principle
of this policy outlined at the start of this document:
"If I were travelling solely for
University business, when would I leave, and when would
I return?"
|
| Q. I know that a travel diary must be completed where
my travel exceeds 5 nights. Are private nights included
in the "exceeds 5 nights" test? |
A. Yes. If you are away for more than 5 nights in total
you must complete a travel diary regardless of the split
between business and private days.
|
| Q. I am staying in Melbourne for 5 nights for a conference
and plan to stay 2 extra private nights. Do I need a travel
diary? |
A. Yes, a travel diary is required as you are away
for a total of 7 nights.
|
| Q. If I have to reimburse the University for 50% of
my airfare, how do I do it? |
A. You will need to consult a Finance Officer or FMIS
Operative in your budget centre and obtain details of
the relevant FMIS account number to which your payment
will be credited.
You should take these details to the University
Cashier and pay the amount due. A copy of the Cashier's
receipt should be attached to relevant claim forms,
eg: Business Card, Payment Request or Petty Cash Vouchers.
|
| Q. If I have to reimburse the University for 50% of
my airfare, should it be calculated using the GST inclusive
or GST exclusive amount? |
A. Your reimbursement should be based on the GST inclusive
price of the airfare.
|
| Q. I am about to go on Academic Study Leave for 6 months.
What are the implications of the University's Combined Business
and Private Travel Policy on my leave? |
A. As outlined in the University's Study Leave Policy
and Procedures, you will receive a Study Leave Allowance
to provide financial assistance in meeting travel and
accommodation/living costs. This allowance will be paid
directly to you through the University payroll system
and will be included on your Payment Summary.
Therefore, you will incur all travel expenditure
personally from the Study Leave Allowance. Accordingly,
the Combined Business & Private Travel Policy will
not apply, as the University is not directly meeting
any of the travel expenditure.
It is recommended that you seek your own
professional taxation advice before your departure about
claiming income tax deductions in your personal income
tax return and any requirement to maintain a travel
diary.
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