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