Can I stay in a dodgy motel and pay $50 and still claim $189. Yep.
Don't agree Paul. Refer to the decision in McIntosh v FCT 2001. Courts held that a deduction can only be claimed for expenses actually incurred.
The ATO reasonable amounts allow deductions UP TO the reasonable amount without substantiation. But if you have stayed in a dodgy hotel and paid $50 then you haven't incurred expenses up to a higher amount.
That was actually covered in the NTAA 2012 Individual Audit Hot Spots seminar. Do you disagree with the NTAA opinion. I think they are correct based on McIntosh's case.
The Commissioners 'per diem' amounts are for substantiation documentation purposes NOT for deductibility purposes under S 8.1. Even TD 2013/16 says "This Determination sets out the amounts that the Commissioner considers are reasonable ( reasonable amounts ) for the substantiation exception in Subdivision 900-B of the Income Tax Assessment Act 1997 (ITAA 1997) for the 2013-14 income year" and in the same document "the expenses claimed cannot exceed the amount actually incurred"