ATO Releases Reasonable Travel and Overtime Meal Allowance Rates for 2025–26
The Australian Taxation Office (ATO) has issued Taxation Determination TD 2025/4, outlining the reasonable travel and overtime meal allowance amounts for the 2025–26 income year. These benchmark rates are important for employees and employers claiming work-related travel and meal expenses.
Key Allowance Amounts for 2025–26
Overtime Meal Expenses
Employees can claim up to $38.65 per meal as a reasonable allowance for overtime meals without needing to provide receipts.
Domestic Travel Allowances
For domestic work-related travel, the ATO provides reasonable amounts across three salary bands for:
- Short-stay accommodation in commercial establishments
- Meals: Breakfast, lunch, and dinner
- Incidental expenses: Minor travel-related costs
These rates help simplify travel expense claims for employees required to work away from home overnight.
Meal Expenses for Truck Drivers
Long-haul truck drivers can claim the following reasonable meal allowances without detailed substantiation:
- Breakfast – $31.15
- Lunch – $35.55
- Dinner – $61.30
Overseas Travel Allowances
For employees travelling overseas for work, reasonable daily amounts are set based on:
- Three income levels
- Meal expenses (breakfast, lunch, dinner)
- Incidental costs such as tips or minor out-of-pocket expenses
Why This Matters:
By staying within these ATO-determined thresholds, employees can claim deductions without the need to keep written evidence, provided they receive a bona fide travel allowance. Employers should also align their allowance policies with these benchmarks to ensure compliance and simplify reporting.
For more detailed tables by salary levels and locations, visit the ATO’s official website or consult our tax adviser.