Expense rules in Australia.
All ATO rules: GST 10%, cents-per-km method 88¢/km, TR 2024 reasonable amounts and VAT recovery rules in Australia.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals (entertainment) | 10% | Not reclaimable | FBT entertainment rules |
| Travel meals | 10% | 100% reclaimable | TR 2024 reasonable cap |
| Accommodation | 10% | 100% reclaimable | Tax invoice required |
| Fuel | 10% | 100% reclaimable | Logbook or cents-per-km method |
| Train / flight | 10% | 100% reclaimable | Passenger transport |
| Taxi / Uber | 10% | 100% reclaimable | Receipt required |
| Client gifts | 10% | FBT limited | $300 minor benefit cap |
| Parking / toll | 10% | 100% reclaimable | Tax invoice |
GST
Single national rate since July 2000.
Tax invoice threshold
Above, tax invoice required.
Retention
ATO records: 5 years after lodgement.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Car (first 5,000 km) | $0,88/km | 5,000 km | Cents per km method 2024-25 |
| Beyond 5,000 km | Logbook method | — | Logbook method required |
| Car (logbook ≥12 wk) | Actual costs | — | For > 5,000 km/year |
Cents per km
ATO 2024-25 rate.
Logbook method
For business use percentage.
Limit
Above: logbook required.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Capital cities Tier 1 | $200 | $320 | $520 |
| Capital cities Tier 2 | $180 | $280 | $460 |
| Regional centres | $150 | $220 | $370 |
| Foreign — Singapore | $200 | $320 | $520 |
| Foreign — London | $190 | $380 | $570 |
| Foreign — Tokyo | $175 | $300 | $475 |
Capital cities
Sydney, Melbourne, Brisbane, Perth.
TR 2024/3
Tax Determination published annually.
Conditions
Bona fide travel away from home.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Australia → EU | 13th Directive if eligible | Variable | Direct filing per EU country |
| France | Reciprocity | 30 Sept. N+1 | Via impots.gouv.fr |
| United Kingdom | Reciprocity | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| AU GST for foreign | TRS only | At airport | Tourist Refund Scheme (TRS) |
TRS
Tourist Refund Scheme at airport.
No B2B recovery
No general B2B recovery procedure.
AU outbound recovery
AU company recovers EU VAT via 13th Directive.
Industrialize your Australia expenses with Illizeo.
GST 10%, ATO 88¢/km cents-per-km, TR 2024/3 per diem, multi-currency AUD↔USD↔EUR: all the ATO rules above are natively integrated into Illizeo.
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