Per Diems

In Australia, employers can pay their employees per diems (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 2022 – 30 June 2023)

Table 1: Reasonable amounts for domestic travel expenses – employee’s annual salary $133,450 and below

Place Accommodation (in AUD) Food and drink (in AUD) breakfast 29.90
lunch 33.65
dinner 57.30
Incidentals (in AUD) Daily total (in AUD)
Adelaide 157 as above 21.30 299.15
Brisbane 175 as above 21.30 317.15
Canberra 168 as above 21.30 310.15
Darwin 220 as above 21.30 362.15
Hobart 147 as above 21.30 289.15
Melbourne 173 as above 21.30 315.15
Perth 180 as above 21.30 322.15
Sydney 198 as above 21.30 340.15
High-cost country centres see Table 4 as above 21.30 variable
Tier 2 country centres (see table 4) 134 breakfast 26.80
lunch 30.60
dinner 52.75
21.30 265.45
Other country centres 121 breakfast 26.80
lunch 30.60
dinner 52.75
21.30 252.45

 

Table 2: Reasonable amounts for domestic travel expenses – employee’s annual salary $133,451 to $237,520

Place Accommodation (in AUD) Food and drink (in AUD) breakfast 32.55
lunch 46.00
dinner 64.50
Incidentals (in AUD) Daily total (in AUD)
Adelaide 208 as above 30.50 381.55
Brisbane 257 as above 30.50 430.55
Canberra 246 as above 30.50 419.55
Darwin 293 as above 30.50 466.55
Hobart 196 as above 30.50 369.55
Melbourne 228 as above 30.50 401.55
Perth 245 as above 30.50 418.55
Sydney 264 as above 30.50 437.55
High-cost country centres see Table 4 as above 30.50 variable
Tier 2 country centres (see table 4) 160 breakfast 29.90
lunch 30.60
dinner 59.60
30.50 310.60
Other country centres 145 breakfast 29.90
lunch 30.60
dinner 59.60
30.50 295.60

 

Table 3: Reasonable amounts for domestic travel expenses – employee’s annual salary $237,521 and above

Place Accommodation (in AUD) Food and drink (in AUD) breakfast 38.20
lunch 54.05
dinner 75.65
Incidentals (in AUD) Daily total (in AUD)
Adelaide 209 as above 30.50 407.40
Brisbane 257 as above 30.50 455.40
Canberra 246 as above 30.50 444.40
Darwin 293 as above 30.50 491.40
Hobart 196 as above 30.50 394.40
Melbourne 265 as above 30.50 463.40
Perth 265 as above 30.50 463.40
Sydney 265 as above 30.50 463.40
Other country centres 195 as above 30.50 variable

 

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

Country centre Country centre
Albany (WA) 179 Jabiru (NT) 216
Alice Springs (NT) 150 Kalgoorlie 5WA) 172
Armidale (NSW) 147 Karratha (WA) 215
Ballarat (VIC) 159 Katherine (NT) 162
Bathurst (NSW) 141 Kununurra (WA) 204
Bega (NSW) 145 Launceston (TAS) 143
Benalla (VIC) 143 Lismore (NSW) 144
Bendigo (VIC) 140 Mackay (QLD) 161
Bordertown (SA) 149 Maitland (NSW) 163
Bourke (NSW) 165 Mount Gambier (SA) 142
Bright (VIC) 167 Mount Isa (QLD) 168
Broken Hill (NSW) 152 Mudgee (NSW) 164
Broome (WA) 220 Muswellbrook (NSW) 157
Bunbury (WA) 157 Newcastle (NSW) 185
Bundaberg (QLD) 147 Newman (WA) 239
Burnie (TAS) 164 Nhulunbuy (NT) 230
Cairns (QLD 163 Norfolk Island (NSW) 190
Carnarvon (WA) 156 Northam (WA) 189
Castelmaine (VIC) 146 Nowra (NSW) 147
Chinchilla (QLD) 143 Orange (NSW) 176
Christmas Island (WA) 198 Port Hedland (WA) 175
Cobar (NSW) 144 Port Lincoln (SA) 170
Cocos (Keeling) Islands 5WA) 331 Port Macquarie (NSW) 170
Coffs Harbour (NSW) 148 Port Pirie (SA) 150
Colac (VIC) 138 Queanbeyan (NSW) 139
Dalby (QLD) 177 Queenstown (TAS) 136
Dampier (WA) 175 Rockhampton (QLD) 139
Derby (WA) 170 Roma (QLD) 146
Devonport (TAS) 158 Shepparton (VIC) 150
Dubbo (NSW) 148 Swan Hill (VIC) 154
Emerald (QLD) 156 Tennant Creek (NT) 146
Esperance (WA) 162 Toowoomba (QLD) 144
Exmouth (WA) 190 Thursday Island (QLD) 258
Geelong (VIC) 149 Townsville (QLD) 143
Geraldton (WA) 165 Wagga Wagga (NSW) 154
Gladstone (QLD) 155 Wangaratta (VIC) 158
Gold Coast (QLD) 209 Weipa (QLD) 190
Gosford (NSW) 145 Whyalla (SA) 145
Griffith (NSW) 138 Wilpena-Pound (SA) 193
Halls Creek (WA) 170 Wollongong (NSW) 158
Hervey Bay (QLD) 157 Wonthaggi (VIC) 160
Horn Island 5QLD) 295 Yulara (NT) 440
Horsham (VIC) 154

Table 5: Tier 2 country centres

Country centre Country centre
Albury (NSW) Kingaroy (QLD)
Ararat (VIC) Maryborough (QLD)
Ayr (QLD) Mildura (VIC)
Bairnsdale (VIC) Nambour (QLD)
Ceduna (SA) Naracoorte (SA)
Charters Towers (QLD) Narrabri (NSW)
Cooma (NSW) Port Augusta (SA)
Cowra (NSW) Portland (VIC)
Echuca (VIC) Renmark (SA)
Goulburn (NSW) Sale (VIC)
Grafton (NSW) Seymour (VIC)
Gunnedah (NSW) Tamworth (NSW)
Hamilton (VIC) Taree (NSW)
Innisfail (QLD) Tumut (NSW)
Inverell (NSW) Warrnambool (VIC)
Kadina (SA)

 

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

Breakfast Lunch Dinner
26.80 AUD 30.60 AUD 52.75 AUD

 

Source: Australian Taxation Office – Taxation Determination 2022/10


International business trips: per diem rate tables (applicable 1 July 2022 – 30 June 2023)

Table 6: Reasonable amounts for overseas travel expenses – employee’s annual salary 133,450 AUD and below

Cost group Meals (AUD) Incidentals (AUD) Total (AUD)
1 60 25 85
2 95 30 125
3 130 35 165
4 170 35 205
5 200 40 240
6 240 45 285

 

Table 7: Reasonable amounts for overseas travel expenses – employee’s annual salary 133,451 to 237,520 AUD

Cost group Meals (AUD) Incidentals (AUD) Total (AUD)
1 75 25 100
2 110 35 145
3 150 40 190
4 190 45 235
5 240 50 290
6 295 50 345

 

Table 8: Reasonable amounts for overseas travel expenses – employee’s annual salary 237,521 AUD and above

Cost group Meals (AUD) Incidentals (AUD) Total (AUD)
1 95 30 125
2 140 40 180
3 185 45 230
4 235 50 285
5 295 60 355
6 340 60 400

 

Table 9: Table of countries

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

 

Source: Australian Taxation Office – Taxation Determination 2022/10

Last changed