This policy outlines the rules and procedures for reimbursing business-related expenses for employees of Remote People 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 Remote People's entity information: Remote People Global Technology Australia Pty Ltd
Employee claim form with:
Name, role, ID, purpose, dates, itemized costs
Mileage log or travel diary (if applicable)
Submit mileage expenses as an expense entry through the designated system.
Include comments or notes specifying the km are for reimbursement purposes.
Provide the total km driven for each month to payroll for accurate processing.
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.
Employees can track business kilometres using either an automatic tool or a manual log. The method of tracking does not affect the reimbursement process.
If an employee exceeds 5,000 business kilometres in a financial year, any additional reimbursements under the cents-per-kilometre method must be treated as taxable earnings and processed through payroll as ordinary taxable income.
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