1. Travelling Allowances (Indicative Upper Limits) within Australia
Travelling allowances have been adjusted following Taxation Determination 2006/43 by the Australian Taxation Office (ATO) and the new rates are to be effective on and from 1 July 2006 for each group of officers as outlined in the attached table of 3 categories.

Category A applies to Chief Executive Officers and Senior Executive Service Officers paid a total remuneration package of at least $206,553 pa and Statutory Officers (unless other arrangements are in place) receiving a cash salary of at least $149,751 pa. These officers can only claim actual expenses, with receipts, which are treated as daily indicative upper limits listed under 'A' in the attached table.

Category B officers (unless other arrangements are in place) can only claim actual expenses, with receipts, which are treated as indicative upper limits under 'B' and are listed in the attached table. These daily indicative upper limits apply to the following officers:

• all other SES Officers paid a total remuneration package below $206,553 pa;
• Statutory Officers on a cash salary of at least $113,961 pa and below a cash salary of $149,751 pa

Category C applies to Senior Officers and all other officers on a cash salary below $113,961pa. These officers are to be paid travelling allowances at the rates under 'C' that are listed in the attached table. Refer to Premier's Department Circular No. 2006-27 'Review of meal, travelling and related allowances'.

All non-SES officers, including Senior Officers and employees in receipt of a Skill Shortage allowance are eligible to be paid the travelling allowance as specified in 'C' in accordance with the Crown Employees (Public Service Conditions of Employment) Reviewed Award 2006. Actual expenses are paid where reasonably and properly incurred costs exceed the allowance.

Officers in agencies who are covered by enterprise awards/agreements are able to claim the travelling allowance as specified for 'all other officers' unless an agreement specifically excludes the Award.

1.1 Part-time members of Government boards
The amounts available to part-time chairpersons and members of Government boards for travel within Australia are outlined in Premier's Memorandum No. 2004-10 'Guidelines for NSW Board and Committee Members: Appointments and Remuneration'. Statutory Officers, part time Chairpersons and members of government boards and committees are not eligible to claim travel allowances but may claim actual expenses to the relevant daily indicative upper limit.

Advisory committee members may claim actual expenses with a daily indicative upper limit as specified in 'C'. The relevant Minister has discretion to decide which rate should apply for members of governing boards and advisory boards. As the total annual salary of part-time board members may not be known to the Minister (the Minister may only be aware of the payments associated with the particular board and not any other work the part-time board member may have) it will be necessary to ensure that the board members are aware of the limits set in Taxation Determination 2006/43 and retain any receipts necessary for their tax records.

1.2 Meal Allowances for travel not involving an overnight stay for officers have been increased to the following rates:

It might be noted that the ATO regards meal allowances for one-day journeys as assessable income for employees and requires these amounts to be taxed and shown on employees' group certificates.

1.3 Classes of Air Travel
The entitlement for business class air travel (Premier's Department Circular No. 2005-03 Official Travel within Australia and Overseas) will be at $113,961 pa (cash salary) and above from 1 July 2006. CES and SES Officers and Senior Officers may fly business class for all overseas travel and for certain long distance domestic travel, subject to Circular No. 2005 -03.

2. Overseas Travelling Allowances
2.1 Less than 35 days in one location
Chief Executive Officers are reminded that the appropriate Minister must approve all official overseas travel by officers (Premier's Department Circular No. 2005-03).

In accordance with Premier's Department Circular No. 2003-05, before an officer is approved to travel overseas on official business, agencies should consult the latest Travel Advice at the Australian Department of Foreign Affairs and Trade website: www.dfat.gov.au

Agencies who have officers travelling overseas on official business may subscribe directly to ECA International to obtain daily travelling allowances in the currency of the country being visited:

To receive an application form please contact:
ECA International Pty Ltd
Suite14 Level 1
88 Cumberland Street
The Rocks NSW 2000

Telephone No. (02) 8272 5300

Contacts:
Sarah Franklin
email: [email protected]
Sandra de Wynter
email: [email protected]

The travel allowance rates for meals and incidentals are calculated using cost of living information from the relevant country. The rates are intended to be a fair and reasonable recompense for the expenses incurred when travelling overseas.

Sets of travel allowance information are compiled by ECA International once a year. The cost of obtaining a global set of travel rates from ECA remains at $1,518 (includes GST) and for individual countries at $151.80 (includes GST). The new global set of travel rates are effective from 1 July 2006. ECA are no longer able to provide a Department Head rate. Agencies in calculating a Department Head daily rate will need to apply a loading of 33% on the SES daily rate for meals and incidentals. This daily rate when calculated is to be rounded up or down to the nearest whole currency unit of the country being visited.

Agencies that have shared corporate services can purchase the rates for use by the shared services business unit. There is no additional cost for this access provided all other copyright provisions are met.

The remuneration levels for various officers for determining appropriate daily overseas travelling allowance rates are detailed as follows:

When a part-time chairperson or member is required to travel overseas, the person is to be paid allowances at the discretion of the relevant Minister, with payment being within the above three (3) categories. Please refer to the possible taxation issues noted in the earlier paragraph - Part-time members of Government boards.

The daily allowance rates are designed to include the cost of meals and incidental expenses but not the cost of accommodation, which is paid on the basis of actual reasonable expenses incurred. Incidental expenses would include, for example, laundry and dry cleaning, taxi fares (other than for official business), newspapers and magazines, private telephone calls and gratuities.

Where the travelling allowance payable to an officer is insufficient to cover actual expenses incurred, the Chief Executive/Minister, where appropriate, may approve the payment necessary to meet those expenses. Justification for the expenses must be in respect of the entire period of travel overseas and not only in respect of particular segments of the journey.

Where an officer's itinerary in Australia or overseas includes 'free meals', for example, meals provided at conferences and seminars, departments are required to make a judgement as to whether an officer's daily allowance should be discounted for such unpaid meals.

For further details please see the Personnel Handbook website: http://www.dpc.nsw.gov.au Chapter 7, Section 13 - Overseas travelling allowances.

2.2 Reduction in daily allowance after 35 days in one location
The daily meal and incidental allowance rates should be reduced to 70 per cent of the daily rates after a person has been in the one location overseas for a period in excess of 35 days. The intention is that officers should be paid the full daily allowance for the first 35 days, however, once an officer is in one set of accommodation then after 35 days their allowance will be reduced.

C. Gellatly
Director General

Issued : Workforce Policy and Advice (Public Employment Office)
Contact: Gary McGrath, Project Officer
EMail: [email protected]
Telephone no: 9228 4381 Facsimile: 9228 3577
File no: PSM/01480
Date: 9 August 2006

_________________________________________________

superseded by C2007-38

__________________________________________________