Expense Reimbursement policy in Australia



Modified on: Tue, 30 Sep, 2025 at 2:45 PM

TABLE OF CONTENTS



This policy outlines the rules and procedures for reimbursing business-related expenses for employees of Horizons Global Technology Australia Pty Ltd, in line with Australian Taxation Office (ATO) guidelines.


Compliance & Recordkeeping


Documentation Required

  • Receipts/invoices with:
    • Vendor, date, description, amount
    • Include Horizon's entity information: Horizons Global Technology Australia Pty Ltd 
  • Employee claim form with:
    • Name, role, ID, purpose, dates, itemised costs
  • Mileage log or travel diary (if applicable)


Travel & Mileage Reimbursement


Cents-Per-Kilometre Method

  • Reimbursement rate: AUD 0.88/km 
  • Covers all running costs (fuel, maintenance, depreciation).
  • Max: 5,000 km/year per vehicle without a logbook.
  • No separate claims for fuel or maintenance under this method.


Logbook Method

  • Required for claims over 5,000 km or for actual running costs.
  • Requires:
    • 12-week logbook
    • Business/private use apportionment
    • Receipts for fuel, maintenance, etc.


Additional Travel Costs

  • Reimbursable with receipts:
    • Parking, tolls, bridge/ferry fees
    • Short-term car rentals for business
  • Not reimbursable:
    • Fines or penalties (e.g. traffic tickets)



Business Travel & Accommodation


Reimbursable Travel

  • Airfare, train, bus, tram, taxi, ferry, and rental cars
  • Must be for legitimate business travel (not commuting)
  • Mixed-purpose travel: only business portion is reimbursable


Accommodation & Meals

  • ATO sets “reasonable amounts”for:
    • Lodging
    • Meals
    • Incidentals
  • Refer to TD 2025/4 for current benchmarks
  • Claims within these limits may not require full receipts



Reimbursement & Taxability


Non-Taxable Reimbursements (if substantiated)

  • Travel costs (airfare, train, taxi, ferry)
  • Car km reimbursements (cents/km or logbook)
  • Hotel/lodging (with invoices)
  • Meals/incidentals during overnight travel (within ATO limits)
  • Parking, tolls, bridge fees
  • Conference/seminar/training costs
  • Business-related phone/internet while traveling
  • Local travel between job sites (if justified)


Non-Reimbursable or Taxable

  • Meals during regular work hours
  • Commuting (home ↔ usual workplace)
  • Unsubstantiated or excessive claims



Per Diems & Allowances

  • Per diemsare non-taxable if:
    • Within ATO’s reasonable amounts (TD 2025/4)
    • Used for overnight travel
  • Overtime meal allowance: AUD 38.65 (2025–26)
  • If allowances exceed benchmarks or lack documentation, the excess is taxable
  • ATO’s substantiation exception allows simplified claims within limits



Entertainment, Gifts & FBT


Entertainment

  • Generally non-deductible:
    • Dinners, parties, recreational events
  • May be FBT-exempt if:
    • Minor, infrequent, or on business premises


Gifts

  • Deductible if:
    • Not entertainment (e.g. books, pens)
    • Related to income generation
  • Non-deductible if:
    • Entertainment in nature (e.g. tickets, meals)
  • FBT may apply to gifts/entertainment for employees or associates



Wellness & Health Expenses


Not generally reimbursable:

  • Gym memberships, therapy, wellness programs
  • May attract FBT unless:
  • Provided as a staff amenity (e.g. on-site coffee, water)
  • Part of a compliant employer program






Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article



Related Articles