Sheet 1: Instructions & Notes

	
	
	
	
	

		

Travel Itinerary Day Count Estimator
Instruction & Notes
		
	

		
General
The intention of this Estimator is to help staff of Federation University Australia in determining whether Fringe Benefits Tax (FBT) is likely to be incurred on travel costs paid, reimbursed or sanctioned by the University, for staff travel which includes private travel components.

This Estimator should not be relied upon as the sole source of advice when planning business travel which includes private travel.

Assistance and advice should be sort from the staff members Faculty Business Manager (Teaching School and Research based staff) or the Financial Accounting and System group within the Finance section of the University, at least 30 days prior to departure.
		
	

		
Data Entry
		
GREEN
		
enter travel data into green cells
		


		


		


		


		


		


		


	
	

		


		


		


		


		


		


		


		


		


		


	
	

		


		
ORANGE
		
cells contain self calculating formula and cannot be edited.
		


		


		


		


		


		


		


	
	

		


		


		


		


		


		


		


		


		


		


	
	

		


		
BLUE
		
cells are headings and results cells and cannot be edited.
		


		


		


		


		


		


		


	
	

		

Enter the Name of the staff member who is travelling in Cell C6 and the destination of the trip in Cell C7 of the
Itinerary Details tab.

Enter the expected Departure date from Australia in Cell G6 and Return to Australia date for the trip in Cell G7 of the
Itinerary Details tab, in an MS Excel date format i.e. 02/05/2015

The dates for the period of the trip will be automatically calculated and entered in Column A.
		
	

		
A maximum of 70 days travel can be classified with this Estimator, where the period of travel is greater than this, advice should be sort from the Financial Accounting and Systems group of Finance.
		
	

		
Period of travel
The period of travel for which the number of days must be accounted for, is from the day on which the staff member departs their normal place of residence to begin the travel in relation to their trip, until the day on which they return to their normal place of residence, after the completion of their trip.
		
	

		
	

		
	

		
Incidental Private Travel
Private Travel is any travel day which is primarily for private purposes, deemed to be for private purposes or days on which work which has not sanctioned been sanctioned by the University is undertaken.

Incidental Private Travel is the number of Private Travel days during a business trip, not including private weekend days,
the total of which does not exceed the private day threshold for the trip.

The private day threshold for any trip up to and including 20 days duration, not including private weekend days and
public holidays, is 25%.

The private day threshold for any trip exceeding 20 days duration, not including private weekend days and public
holidays, is 30%.
		
	

		
Private Travel exceeding the Incidental Private Travel limits
Where the amount of Private Travel days exceeds the Incidental Private Travel threshold for a trip, the trip is deemed to be a Dual Purpose trip and the travel and associated costs will be subject to FBT.

Where it has been determined that a trip is a Dual Purpose trip, the travel plans for the trip must be reviewed and a decision made as to whether:
- the plans for the trip can be re-organised to remove enough Private Days to make the trip a business purpose trip; or
- the staff member undertaking the trip will be required to pay for 50% of the travel and associated costs of the trip: or
- the plans for the trip are cancelled.

Payment of 50% of the travel and associated costs by the staff member will remove the requirement for the University to pay FBT on the trips travel and associated costs.

Where a staff member is required to pay for 50% of the travel and associated costs of a trip, the amount must be paid prior to the trip commencing, from personal after tax income of the staff member, directly to the travel provider or travel agency arranging the travel.
Consultancy funds, staff awards, teaching awards, publishing incentives and similar funds held within the University cannot be used to pay for the private component of travel and associated costs of a Dual Purpose trip.
		
	

		
Travel and associated costs
Travel and associated costs are all outbound and inbound travel costs to be incurred for the trip which relate to the travel of the staff member from their normal place of residence to their accommodation at their destination and from their destination accommodation back to their normal place of residence.
Examples of these costs include but are not limited to the cost of return airfares, arrival and departure taxes, fuel levies and fees, airport shuttles, fleet car charges, hire car charges, taxi costs and parking fees.
		
	

		
Classification of Days
The Day Classification must be selected from either Business Day, Travel Day, Travel Recovery Day, Private Day or Non-business weekend day, no other entries are possible.

The count of the business and private days will be based on the entries in the staff members Travel Diary to determine the principal purpose of the trip.
		
	

		
Business Days
A Business day is any day on which University Business related activities are undertaken by a staff member for an aggregate period equal to or exceeding 3 hours, not including meal times and rest breaks.

University business is any activity of business, educational or professional nature sanctioned by the University.

Examples of business related activities include but are not limited to:- attending a business related conference, presenting a paper at a business related conference, research, teaching and lecturing, attending business meetings.
		
	

		
Travel Days
A travel day is any day spent travelling to or from a business activity location, a travel day is classified as a business day.
A maximum of two (2) travel days is accepted by the University for continuous travel from or to Australia.
Any travel days in excess of two (2) days for travel from or to Australia are counted as private days unless it can be shown there are or were exceptional circumstances requiring additional travel days.
Exceptional circumstances can include but are not limited to:
- medical conditions of the traveller documented with and accepted by the University’s Human Resources Section and
  the University’s Travel Insurance insurers, prior to the booking of flights;
- time taken for additional shuttle flights within a destination country to get to a business location;
- travel delays between business locations due to circumstances outside of the traveller’s control, including but not limited
  to un-announced strikes, natural disasters, civil disorder, closure of routes or the re-scheduling or cancellation of
  services by a carrier.
Travel days as part of a trip to or from an annual leave, recreation leave or private day location are classified as private days
and the costs associated with this travel must be paid for by the staff member from after tax funds.

		
	

		
Travel Physical Recovery Days
The day immediately following the completion of continuous international air travel from or to Australia, which would otherwise be classified as a Private Day may be classified by a staff member as a Business Day where that day is used for physical recovery.

No travel physical recovery days are considered necessary for domestic travel within Australia or travel to New Zealand.
		
	

		
Private Days
A private day while travelling is any day on which less than three (3) hours University business is planned to take place or took place.
Travel time to or from a recreation leave or private day location are private days and the cost of the travel to and from the location is a private cost.
The University close down period, days of recreation leave, days of time off in lieu and flexi days are all classified as private days.         
A staff member planning a trip which includes private days must use their accrued annual leave for the private days and must apply to the Human Resources Section of the University to use their annual leave.    
If a staff member does not have enough accrued annual leave days to cover any private days in a trip, the private days will need to be taken as un-paid leave days.
		
	

		
Travel planning records
It is advisable that a copy of the completed Itinerary Day Count Estimator is printed and filed with the staff members travel plan documentation.

The Itinerary Day Count Estimator does not replace a Travel Diary, a travel diary must be completed by each staff member travelling overseas and submitted to Finance Services.

A Travel Diary is required and must be completed and signed by a staff member for all University related travel, where the staff member is away for six (6) or more nights, this document is required by the Australian Taxation Office for the University to substantiate that the travel was for business purpose and is exempt from FBT.

A travel diary is a diary or similar document to be maintained and signed by an employee to substantiate the business nature of any University sanctioned travel where the employee is required to travel away from home for six or more consecutive nights. The determination of the number of nights away commences from when the employee first departs their home to start travel and concludes when the employee returns to their home.

The Federation University Australia Travel Diary pro-forma is a Microsoft Excel based spreadsheet, it is available via a link in the Concur travel management system to the Federation University Australia webpage.

The web link to the pro-forma is: 
		
	

		
http://policy.federation.edu.au/forms/FedUni-Travel-Diary-Itinerary.xlsx
		
	

		


		


		


		


		


		


		


		


		


		
v5.0