Recently, the Australia Tax Office (ATO) announced the “reasonable amounts” for food and drink expenses incurred by employees when living away from home.

A living away from home allowance is an allowance you pay to your employee to compensate for additional expenses incurred and any disadvantages suffered because the employee’s duties of employment require them to live away from their normal residence.

 

Allowance of reasonable food and drink within Australia

The below weekly allowance for food and drink within Australia.

 

 $ Per Week
One Adult$283
Two Adults$425
Three Adults$567
One Adult and One Child$354
Two Adults and One Child$496
Two Adults and Two Children$567
Two Adults and Three Children$638
Three Adults and One Child$638
Three Adults and Two Children$709
Four Adults$709

 

Allowance of reasonable food and drink overseas

In relation to larger family groupings, the Commissioner accepts the reasonable food and drink amount based on Table 1 figures plus:

  • $142 for each additional adult, and
  • $71 for each additional child.

 

There is also a change to the amounts for reasonable food and drink outside of Australia.

 

Cost GroupFood and Drink for One Adult
1$137
2$201
3$273
4$346
5$437
6$537

 

You can find the list of countries here.

 

Note: If the employee lives away from home in a country that is not shown in Table 2, the employee can use the amount for cost group 1 in Table 3.

 

About Employment Innovations

Employment Innovations is one of Australia’s leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium sized employer needs – including workplace advice, legal services, payroll solutions, migration, human resource management and HR software.

 

Disclaimer

The information provided in these blog articles is general in nature and is not intended to substitute for professional advice. If you are unsure about how this information applies to your specific situation we recommend you contact Employment Innovations for advice.

 

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