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 Group | Food 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.
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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.