In Australia, employers can pay their employees per diem (i.e. daily allowances) as compensation for the expenses (such as maintenance, restaurants and hotels) incurred while they are on a business trip.

Per diems are not considered part of an employee’s income and are thus tax-free if they are following the ATO’s maximum amounts. These maximum amounts reflect what the ATO has determined as reasonable. These rates are reviewed at the start of each income year (1 July).

Domestic Business Trips

The rates for domestic business trips depend on the destination and the salary of the employee. They are split into accommodation, meals and incidentals. You can find all the rates applicable for domestic trips below at the end of this article.

The reasonable amount for accommodation applies only for short stays in commercial establishments like hotels, motels and serviced apartments. If a different type of accommodation is used (for example, a hostel or caravan park), a reasonable amount cannot be used even if you receive an allowance.

The reasonable amount for meals depends on the period and time of travel. The amounts only apply to meals (breakfast, lunch and dinner) that fall within the time of day from the commencement of your travel to the end of your travel that is covered by the allowance.

For example, if you leave at 10:00 AM on Monday and return home at 3:00 PM on Tuesday, you can apply the reasonable amounts for lunch and dinner on Monday and breakfast and lunch on Tuesday.

The reasonable amount for incidentals applies in full to each day of travel covered by the allowance, without the need to apportion for any part-day travel on the first and last day.

The reasonable amounts described in this article do not apply to employee truck drivers, office holders covered by the Remuneration Tribunal and Federal Members of Parliament. You can find more information about this on ATO’s Tax Determinations.

The ATO’s Tax determinations also provide examples of calculation of reasonable amounts.

International Business Trips

Reasonable amounts

You can find all the rates applicable for international trips below at the end of this article. The rates depend on the destination and the salary of the employee. They are split into meals and incidentals.

Destination countries are divided into six different cost groups. These different cost groups have different reasonable amounts. If you travel to 2 or more countries on the same day, use the cost group of the country that is in the higher cost group in determining the reasonable amount for that day.

The reasonable amount for incidentals applies in full to each day of travel covered by the allowance, without the need to apportion for any part-day travel on the first and last day.

Substantiation

Expenses for accommodation during an international business trip must be fully substantiated. This means you need to provide documentation to prove the reimbursed amount corresponds with the actual incurred expenses.

If an international business trip lasts for more than 6 nights in a row, you must keep travel records to substantiate your expenses, even if you rely on reasonable amounts.


Domestic business trips: per diem rate tables (applicable 1 July 2025 – 30 June 2026)

Table 1: Reasonable amounts for domestic travel expenses – employee’s annual salary $148,250 or less

Place Accomm. ($) Food and drink ($) Incidentals ($) Daily total ($)
Adelaide 158 breakfast 34.75
lunch 39.10
dinner 66.65
24.50 323.00
Brisbane 181 breakfast 34.75
lunch 39.10
dinner 66.65
24.50 346.00
Canberra 178 breakfast 34.75
lunch 39.10
dinner 66.65
24.50 343.00
Darwin 220 breakfast 34.75
lunch 39.10
dinner 66.65
24.50 385.00
Hobart 176 breakfast 34.75
lunch 39.10
dinner 66.65
24.50 341.00
Melbourne 173 breakfast 34.75
lunch 39.10
dinner 66.65
24.50 338.00
Perth 180 breakfast 34.75
lunch 39.10
dinner 66.65
24.50 345.00
Sydney 223 breakfast 34.75
lunch 39.10
dinner 66.65
24.50 388.00
High-cost country centres see Table 4 breakfast 34.75
lunch 39.10
dinner 66.65
24.50 variable
Other country centres 141 breakfast 31.15
lunch 35.55
dinner 61.30
24.50 293.50

 

Table 2: Reasonable amounts for domestic travel expenses – employee’s annual salary
$148,251 to $263,850

Place Accomm. ($) Food and drink ($) Incidentals ($) Daily total ($)
Adelaide 211 breakfast 37.85
lunch 53.45
dinner 75.00
35.05 412.35
Brisbane 257 breakfast 37.85
lunch 53.45
dinner 75.00
35.05 458.35
Canberra 246 breakfast 37.85
lunch 53.45
dinner 75.00
35.05 447.35
Darwin 293 breakfast 37.85
lunch 53.45
dinner 75.00
35.05 494.35
Hobart 235 breakfast 37.85
lunch 53.45
dinner 75.00
35.05 436.35
Melbourne 231 breakfast 37.85
lunch 53.45
dinner 75.00
35.05 432.35
Perth 245 breakfast 37.85
lunch 53.45
dinner 75.00
35.05 446.35
Sydney 297 breakfast 37.85
lunch 53.45
dinner 75.00
35.05 498.35
High-cost country centres see Table 4 breakfast 37.85
lunch 53.45
dinner 75.00
35.05 variable
Other country centres 188 breakfast 34.75
lunch 35.55
dinner 69.00
35.05 362.35

 

Table 3: Reasonable amounts for domestic travel expenses – employee’s annual salary $263,851 or more

Place Accomm. ($) Food and drink ($) Incidentals ($) Daily total ($)
Adelaide 211 breakfast 42.15
lunch 59.60
dinner 83.40
35.05 431.20
Brisbane 257 breakfast 42.15
lunch 59.60
dinner 83.40
35.05 477.20
Canberra 246 breakfast 42.15
lunch 59.60
dinner 83.40
35.05 466.20
Darwin 293 breakfast 42.15
lunch 59.60
dinner 83.40
35.05 513.20
Hobart 235 breakfast 42.15
lunch 59.60
dinner 83.40
35.05 455.20
Melbourne 265 breakfast 42.15
lunch 59.60
dinner 83.40
35.05 485.20
Perth 265 breakfast 42.15
lunch 59.60
dinner 83.40
35.05 485.20
Sydney 297 breakfast 42.15
lunch 59.60
dinner 83.40
35.05 517.20
All country centres 207 or the relevant amount in Table 4 if higher breakfast 42.15
lunch 59.60
dinner 83.40
35.05 variable

 

Table 4: Reasonable amounts for domestic travel expenses – high-cost country centres accommodation expenses

Country centre $ Country centre $
Albany (WA) 193 Kadina (SA) 207
Albury (NSW) 207 Kalgoorlie (WA) 193
Alice Springs (NT) 206 Karratha (WA) 288
Ararat (Vic) 159 Katherine (NT) 228
Armidale (NSW) 166 Kingaroy (Qld) 180
Ayr (Qld) 207 Kununurra (WA) 222
Bairnsdale (Vic) 176 Launceston (Tas) 174
Ballarat (Vic) 187 Lismore (NSW) 183
Bathurst (NSW) 207 Mackay (Qld) 166
Bega (NSW) 207 Maitland (NSW) 187
Benalla (Vic) 168 Maryborough (Qld) 207
Bendigo (Vic) 170 Mildura (Vic) 170
Bordertown (SA) 164 Mount Gambier (SA) 164
Bourke (NSW) 184 Mount Isa (Qld) 185
Bright (Vic) 180 Mudgee (NSW) 206
Broken Hill (NSW) 162 Muswellbrook (NSW) 160
Broome (WA) 255 Nambour (Qld) 163
Bunbury (WA) 178 Naracoorte (SA) 207
Bundaberg (Qld) 184 Narrabri (NSW) 207
Burnie (Tas) 178 Newcastle (NSW) 195
Cairns (Qld) 175 Newman (WA) 271
Carnarvon (WA) 174 Nhulunbuy (NT) 264
Castlemaine (Vic) 162 Norfolk Island (Qld) 256
Ceduna (SA) 156 Northam (WA) 220
Charters Towers (Qld) 168 Nowra (NSW) 168
Chinchilla (Qld) 207 Orange (NSW) 215
Christmas Island (WA) 218 Port Augusta (SA) 207
Cobar (NSW) 207 Port Hedland (WA) 266
Cocos (Keeling) Islands (WA) 331 Port Lincoln (SA) 170
Coffs Harbour (NSW) 207 Port Macquarie (NSW) 190
Colac (Vic) 207 Port Pirie (SA) 207
Cooma (NSW) 207 Portland (Vic) 163
Cowra (NSW) 207 Queanbeyan (NSW) 207
Dalby (Qld) 201 Queenstown (Tas) 207
Dampier (WA) 199 Renmark (SA) 207
Derby (WA) 192 Rockhampton (Qld) 174
Devonport (Tas) 162 Roma (Qld) 182
Dubbo (NSW) 170 Sale (Vic) 207
Echuca (Vic) 207 Seymour (Vic) 164
Emerald (Qld) 179 Shepparton (Vic) 167
Esperance (WA) 180 Swan Hill (Vic) 181
Exmouth (WA) 235 Tamworth (NSW) 207
Geelong (Vic) 175 Taree (NSW) 207
Geraldton (WA) 190 Tennant Creek (NT) 207
Gladstone (Qld) 171 Thursday Island (Qld) 323
Gold Coast (Qld) 225 Toowoomba (Qld) 161
Goulburn (NSW) 165 Townsville (Qld) 174
Gosford (NSW) 161 Tumut (NSW) 207
Grafton (NSW) 172 Wagga Wagga (NSW) 177
Griffith (NSW) 160 Wangaratta (Vic) 186
Gunnedah (NSW) 180 Warrnambool (Vic) 175
Halls Creek (WA) 204 Weipa (Qld) 238
Hamilton (Vic) 170 Whyalla (SA) 167
Hervey Bay (Qld) 175 Wilpena-Pound (SA) 272
Horn Island (Qld) 345 Wodonga (Vic) 207
Horsham (Vic) 166 Wollongong (NSW) 182
Innisfail (Qld) 207 Wonthaggi (Vic) 188
Inverell (NSW) 207 Yulara (NT) 570
Jabiru (NT) 216

 

Table 5: Reasonable amounts for domestic travel expenses – employee truck driver’s meals (food and drink)

Breakfast Lunch Dinner
$31.15 $35.55 $61.30

 

Source: Australian Taxation Office – Taxation Determination 2025/6


International business trips: per diem rate tables (applicable 1 July 2025 – 30 June 2026)

Table 5: Reasonable amounts for overseas travel expenses – employee’s annual salary $148,250 or less

Cost group Meals ($) Incidentals ($) Total ($)
1 75 25 100
2 110 30 140
3 150 35 185
4 195 35 230
5 235 40 275
6 280 45 325

 

Table 6: Reasonable amounts for overseas travel expenses – employee’s annual salary $148,251 to $263,850

Cost group Meals ($) Incidentals ($) Total ($)
1 95 25 120
2 130 35 165
3 175 40 215
4 215 45 260
5 290 50 340
6 360 50 410

Table 7: Reasonable amounts for overseas travel expenses – employee’s annual salary $263,851 or more

Cost group Meals ($) Incidentals ($) Total ($)
1 120 30 150
2 180 40 220
3 230 45 275
4 290 50 340
5 365 60 425
6 415 60 475

 

Table 8: Table of countries (for overseas travel)

Country Cost group Country Cost group Country Cost group
Albania 2 Georgia 3 North Macedonia 2
Algeria 3 Germany 5 Norway 6
Antigua and Barbuda 6 Gibraltar 4 Oman 6
Argentina 3 Greece 4 Pakistan 2
Armenia 3 Guatemala 4 Panama 4
Austria 5 Guyana 4 Papua New Guinea 4
Azerbaijan 3 Hong Kong 6 Paraguay 2
Bahamas 6 Hungary 3 Peru 3
Bahrain 6 Iceland 6 Philippines 4
Bangladesh 4 India 3 Poland 3
Barbados 6 Indonesia 3 Portugal 4
Belarus 2 Iran 1 Puerto Rico 6
Belgium 5 Iraq 4 Qatar 6
Bermuda 6 Ireland 6 Romania 3
Bolivia 3 Israel 6 Russia 4
Bosnia 2 Italy 5 Rwanda 2
Brazil 3 Jamaica 4 Saint Lucia 5
Brunei 3 Japan 5 Saint Vincent 3
Bulgaria 3 Jordan 6 Samoa 4
Burkina Faso 3 Kazakhstan 3 Saudi Arabia 5
Cambodia 3 Kenya 4 Senegal 4
Cameroon 4 Korea Republic 5 Serbia 3
Canada 5 Kosovo 2 Sierra Leone 3
Chile 3 Kuwait 5 Singapore 6
China 5 Kyrgyzstan 2 Slovakia 4
Colombia 3 Laos 2 Slovenia 3
Cook Islands 4 Latvia 4 Solomon Islands 4
Costa Rica 4 Lebanon 3 South Africa 2
Cote d’Ivoire 5 Lithuania 4 Spain 4
Croatia 3 Luxembourg 5 Sri Lanka 4
Cyprus 4 Macau 5 Sweden 5
Czech Republic 4 Malaysia 3 Switzerland 6
Denmark 6 Mali 3 Taiwan 5
Dominican Republic 4 Malta 4 Tanzania 2
East Timor 3 Mauritius 4 Thailand 4
Ecuador 4 Mexico 4 Tonga 3
Egypt 2 Monaco 6 Trinidad and Tobago 6
El Salvador 4 Morocco 3 Türkiye (Turkey) 3
Eritrea 3 Mozambique 3 Tunisia 2
Estonia 4 Myanmar 2 Uganda 3
Ethiopia 2 Namibia 2 Ukraine 2
Fiji 3 Nepal 2 United Arab Emirates 6
Finland 6 Netherlands 5 United Kingdom 5
France 5 New Caledonia 5 United States of America 6
French Polynesia 6 New Zealand 4 Uruguay 3
Gabon 5 Nicaragua 3 Vanuatu 4
Gambia 2 Nigeria 4 Vietnam 3

 

Source: Australian Taxation Office – Taxation Determination 2025/6

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