Income tax: reasonable travel and overtime meal allowance expense amounts for the 2025-26 income year

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 for the 2025–26 income year in relation to claims made by employees for: • overtime meal expenses – for food and drink when working overtime • domestic travel expenses – for accommodation, food and drink, and incidentals when travelling away from home overnight for work (particular reasonable amounts are given for employee truck drivers, office holders covered by the Remuneration Tribunal and federal members of parliament), and • overseas travel expenses – for food and drink, and incidentals when travelling overseas for work.

This Determination should be read together with Taxation Ruling TR 2004/6 Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses , which explains the substantiation exception and the way in which these expenses are able to be claimed.

The approach outlined in this Determination can only be used where you receive an allowance to cover the particular expenses you are claiming – for example, you received an accommodation allowance and are claiming accommodation expenses. This Determination is not relevant to you where you do not receive an allowance to cover your expenses.

The reasonable amounts only provide the maximum amount you can claim without being required to substantiate your expenditure (refer to paragraph 33 of TR 2004/6). If you rely on the reasonable amounts and we check your tax return, you will still be required to show: • that you spent the money in performing your work duties (for example, in travelling away from home overnight on a work trip) • how you worked out your claim (for example, you kept a diary) • that you spent the money yourself (for example, using your credit card statement or other banking records) and were not reimbursed (for example, a letter from your employer), and • that you correctly declared your allowance as income in your tax return.

The Commissioner will accept that the daily rates from certain providers such as Employment Conditions Abroad (ECA) as a commercial provider, or the Australian Public Service Commission (APSC) as a provider by subscription to government agencies, are reasonable amounts for the purposes of claims made by employees referred to in paragraph 1 of this Determination.

For the 2025–26 income year, the reasonable amount for overtime meal expenses is $38.65.

Samantha works for the local government. She is asked to work overtime one night to complete an urgent task. Samantha works her 8-hour day followed by 4 hours of overtime. Samantha receives an overtime meal allowance of $25 pursuant to her agreement, which appears on her income statement. During the overtime, Samantha takes a rest break to get a meal and returns to continue her overtime. Samantha spends $30 on her meal.

As Samantha spends less than the reasonable amount for overtime meal expenses, she can claim a deduction for the $30 she spends and she is not required to substantiate the expenditure (for example, get and keep the receipt for the meal).

If we check Samantha's tax return, she may be asked to explain her claim for a deduction. To do this, Samantha would need to show that she: • worked overtime • was paid an overtime meal allowance under an industrial instrument • correctly declared this allowance as income in her tax return, and • costed her meal at $30 based on the cost of the curry and drink she purchased from a nearby Thai restaurant.

If Samantha spends more than the reasonable amount and wants to claim the higher amount she spends, she needs to get and keep the receipt for the meal.

If Samantha's overtime meal allowance is not shown on her income statement and she fully spends the allowance, she can choose to leave it out of her tax return and not claim a deduction for the meal she purchases when working overtime.

The following reasonable amounts for domestic travel expenses do not apply to employee truck drivers [1] , office holders covered by the Remuneration Tribunal [2] or federal members of parliament. [3]

Reasonable amounts are provided in this Determination for 3 salary levels. Salary excludes any allowances received. • Use Table 1 if your salary is $148,250 or less. • Use Table 2 if your salary is between $148,251 and $263,850. • Use Table 3 if your salary is $263,851 or more.

Part-time employees annualise their salary to a full-time equivalent salary level when determining which table to use for determining reasonable amounts under the substantiation exception. This ensures an equitable outcome for employees within the organisation.

Reasonable amounts are given for: • accommodation at daily rates (for domestic travel only) • meals (showing breakfast, lunch and dinner), and • expenses incidental to travel.

These amounts are shown for the following travel destinations: • each Australian state and territory capital city (see Tables 1 to 3 of this Determination) • certain specified high-cost regional and country centres (see Table 4 of this Determination for individual amounts), and • all other regional and country centres (a common amount is given for all locations not listed in Table 4 of this Determination).

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), the reasonable amount cannot be used even if you receive an allowance.

The reasonable amount for meals depends on the period and time of travel. That is, the reasonable amounts only apply to meals (that is, 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 for domestic travel expenses, according to salary levels and destinations, for the 2025–26 income year, are shown in Tables 1 to 4 of this Determination as follows: 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 of this Determination 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 of this Determination 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 Not applicable Not applicable

Svetlana is an accountant earning $170,000 a year. As part of her duties, she is required to travel to and work in Sale for 4 days and 3 nights each month. Svetlana's employer pays for her accommodation directly and gives her a meal and incidental allowance of $140 per day for the 4 days of travel. This allowance is shown on her income statement. Svetlana's usual pattern is to eat 3 times a day, spending $30 on breakfast, $40 on lunch and $65 on dinner (that is, a total of $135 per day). Svetlana calculates the daily reasonable amount for meals and incidentals as follows: • Table 2 of this Determination applies because Svetlana's salary is between $148,251 and $263,850. • Sale is listed as a high-cost country centre in Table 4 of this Determination. • Table 2 of this Determination provides reasonable amounts for high-cost country centres as $166.30 per day for meals and $35.05 per day for incidentals (that is, a total of $201.35 per day).

As Svetlana spends less than the reasonable amount on meals and incidentals, she can claim a deduction for the $135 per day that she spends on meals and she is not required to substantiate the expenditure (for example, get and keep all of the receipts for the meals). Svetlana cannot claim anything for accommodation because her employer paid for it.

If we check Svetlana's tax return, she may be asked to explain her claim for a deduction. To do this, Svetlana would show that she: • travelled to and worked in Sale for 4 days each month • received an allowance for the meals and incidentals for each day she travelled • correctly declared this allowance as income in her tax return, and • typically spent $135 a day on meals and incidental expenses (for example, by reference to diary entries, bank records and receipts that she keeps for some of the trips).

If Svetlana spends more than the reasonable amount on meals and incidentals and wants to claim the higher amount that she spends, she would need to get and keep all of the receipts.

If Svetlana's meal and incidental allowance was not shown on her income statement and she fully spent the allowance, she can choose to leave it out of her tax return and not claim any deductions for the meals and incidentals that she purchases while travelling and working in Sale.

Reasonable amounts for domestic travel expenses for employee truck drivers [4] are given for meals (breakfast, lunch and dinner). The amounts are for all domestic travel destinations (that is, capital cities, regional and country centres). For the 2025–26 income year, the relevant amounts are as set out in Table 5 of this Determination: 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

The amounts for each of these meal breaks are separate and cannot be aggregated into a single daily amount. This is of particular importance for the days on which travel commences and ends, when some meals may not be deductible because they are not consumed in the course of work travel. A driver's work diary (as maintained for fatigue-management purposes) can be used to demonstrate when meal breaks were taken, since employee truck drivers may take meal breaks at different times of the day compared to other taxpayers. It should also be noted that amounts cannot be moved from one meal to another (for example, if the full amount for breakfast is not expended, it cannot be carried over to lunch or dinner).

The deduction allowed for each meal is the amount actually spent and not simply the reasonable amount specified in Table 5 of this Determination. Although the formal substantiation requirements do not apply for claims up to the reasonable amount, taxpayers should still be able to demonstrate the basis for their claims. Example 3 of this Determination shows how this can be done.

All accommodation expenses and incidental expenses (for example, the cost of a shower) incurred by employee truck drivers as part of work-related travel must be substantiated with written evidence (for example, a receipt).

Glenn is an employee truck driver. He is required to drive from Melbourne to Adelaide. Glenn leaves Melbourne at 9:00 pm, sleeps away from home overnight in his truck cab, then drives back to Melbourne the following day. Glenn is paid a travel allowance of $80 for each day. These amounts are shown on his income statement.

Glenn stops around midnight at a 24-hour truck stop in Horsham and spends $40 on food and drink. He then continues to Adelaide where he snacks on a sandwich and fruit that he brought from home, before having a sleep in the truck cab. In the morning, Glenn spends $25 on food and drink at the truck stop where he parked overnight. After the truck is unloaded and reloaded, Glenn heads to Bordertown where he stops for lunch. Here he spends $30 on food and drink. He then continues to Melbourne arriving at 5:00 pm, snacking on almonds and water that he brought from home as he drives.

As Glenn spent less than the reasonable amount for each of dinner, breakfast and lunch, he can claim a deduction for the full amount that he spent on those meals ($95) and is not required to obtain and keep all of the receipts for these meals. He may still need to provide a reasonable explanation of the expenses and so the receipts could be useful in demonstrating a pattern (see paragraph 33 of this Determination).

If we check Glenn's tax return, he may be asked to explain his claim for these amounts. He would need to: • show that he travelled to and from Adelaide (for example, his work diary) • show that he received an allowance for the meals for each day that he travelled • show that he correctly declared this allowance as income in his tax return, and • demonstrate his typical spending pattern on meals. This could be by reference to diary entries, bank records and receipts kept for some (a representative sample) of his trips.

If you are travelling overseas and are away from your usual residence for 6 or more nights in a row, you must still keep travel records even if you rely on the reasonable amounts and do not have to substantiate your expenses. Travel records may include ticketing information, diary entries or other information setting out the nature of your travel, the day and time it began, how long it lasted and where you travelled.

Reasonable amounts are provided in this Determination for 3 salary levels. Salary excludes any allowances received. • Use Table 6 if your salary is $148,250 or less. • Use Table 7 if your salary is between $148,251 and $263,850. • Use Table 8 if your salary is $263,851 or more.

Reasonable amounts are given for: • meals (showing breakfast, lunch and dinner), and • expenses incidental to travel.

Any expenditure on accommodation overseas must be fully substantiated.

Reasonable amounts are shown for cost groups to which a country has been allocated. Table 9 of this Determination sets out the cost group to which a country has been allocated.

If you travel to a country that is not shown in Table 9 of this Determination, and you are not using an alternate provider's data, use the reasonable amount for cost group 3 in the table relevant to your salary range. We use the cost group values of countries listed to reflect the reasonable costs of unlisted countries.

If you travel to 2 or more countries in 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.

The reasonable amounts for overseas travel expenses per day according to salary levels and cost groups for the 2025–26 income year are shown in Tables 6 to 9 of this Determination as follows: Table 6: 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 7: 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 8: 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 9: Table of countries 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 Tunisia 2 Eritrea 3 Mozambique 3 Türkiye (Turkey) 3 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

Prashant travels to China on business for 2 weeks and is paid a travel allowance of $550 per day (made up of $300 for meals and incidentals and $250 for accommodation). Prashant's annual salary is $191,000. Prashant usually spends $300 per day on meals and incidentals and $300 per night on accommodation when travelling in China. Prashant calculates the daily reasonable amount for his overseas travel as follows: • Table 7 of this Determination applies because Prashant's salary is between $148,251 and $263,850. • Table 9 of this Determination lists China as Cost group 5. • Table 7 of this Determination provides reasonable amounts for meals and incidental expenses for Cost group 5 as $290 per day for meals and $50 per day for incidentals (that is, a total of $340 per day).

As Prashant spends less than the reasonable amount on meals and incidentals, he can claim a deduction for the $300 per day that he spends and he is not required to substantiate the expenditure (for example, get and keep all of the receipts for the meals and incidentals). However, because he spends more than 6 nights away in a row, Prashant must keep travel records (such as a travel diary) for the 2 weeks he is in China. Prashant can claim a deduction for the $300 per day he spends on accommodation but he must fully substantiate this expenditure (by getting and keeping a receipt or other documentary evidence of the expenditure).

If we check Prashant's tax return, he may be asked to explain his claim for a deduction. To do this, Prashant would show he: • travelled to China for work • received an allowance for the meals and incidentals for each day he travelled • correctly declared this allowance as income in his tax return, and • typically spent $300 a day on meals and incidental expenses (for example, by reference to diary entries, bank records and some receipts that he kept).

If Prashant's travel allowance for meals and incidentals were not shown on his income statement and he fully spent the allowance, he can choose to leave this allowance out of his tax return and not claim any deductions for the meals and incidentals he purchases when travelling and working in China. His accommodation allowance will have been included on his income statement as Prashant's employer must withhold from the accommodation allowance. [5]

This Determination applies to the 2025–26 income year only. However, this Determination will not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of this Determination (see paragraphs 75 to 76 of Taxation Ruling TR 2006/10 Public Rulings).