The ATO publishes new reasonable travel and overtime meal allowance amounts every year. For the 2026-27 income year they are set out in Taxation Determination TD 2026/4, issued on 24 June 2026. Below are the key 2026-27 figures, the 2025-26 figures from TD 2025/4 for anyone still lodging last year’s return, and what the “reasonable amount” actually means for your tax return.
Overtime meal allowance 2026-27
The reasonable overtime meal amount for 2026-27 is $40.00 per meal (up from $38.65 in 2025-26). It applies when you receive an overtime meal allowance paid under an industrial instrument, such as an award or enterprise agreement.
ATO domestic travel allowance rates 2026-27 (per diem)
Domestic travel amounts depend on your salary band and where you stay. Salary means your annual salary excluding allowances.
- Table 1: salary of $153,210 or less
- Table 2: salary of $153,211 to $272,680
- Table 3: salary of $272,681 or more
Meals and incidentals per day (2026-27)
| Salary band and location | Breakfast | Lunch | Dinner | Incidentals |
|---|---|---|---|---|
| Table 1, capital cities | $36.00 | $40.45 | $69.00 | $25.40 |
| Table 1, other country centres | $32.25 | $36.80 | $63.45 | $25.40 |
| Table 2, capital cities | $39.20 | $55.35 | $77.65 | $36.30 |
| Table 3, capital cities | $43.65 | $61.70 | $86.35 | $36.30 |
Accommodation per night, Table 1 (2026-27)
| Location | Accommodation |
|---|---|
| Adelaide | $158 |
| Brisbane | $188 |
| Canberra | $178 |
| Darwin | $220 |
| Hobart | $176 |
| Melbourne | $175 |
| Perth | $180 |
| Sydney | $230 |
| Other country centres | $141 |
Higher salary bands and many regional centres have their own accommodation amounts. Check the full tables in TD 2026/4 for your exact location.
Truck drivers
Long-distance truck drivers have separate meal amounts for 2026-27: breakfast $32.25, lunch $36.80 and dinner $63.45. Each meal is a separate amount and cannot be combined or moved between meals. Accommodation and incidentals must be substantiated with written evidence.
Overseas travel
The overseas reasonable amounts cover meals and incidental expenses only. Any overseas accommodation must be fully substantiated with receipts. If you are away from your usual residence for six or more nights in a row, you must still keep travel records, even when relying on the reasonable amounts.
What a “reasonable amount” means for your tax return
- It is not an automatic deduction. You can only claim what you actually spent, and the amount must relate to your work travel or overtime.
- It can save you keeping receipts. If you receive a genuine travel or overtime meal allowance and your claim is within the reasonable amount, you generally do not need written evidence of the expense, but you must be able to show how you worked out the claim.
- Above the reasonable amount, keep everything. If you claim more than the reasonable amount, the whole claim must be substantiated, not just the excess.
- The allowance must be declared. Allowances shown on your income statement are assessable income and must be included in your return.
2025-26 rates (TD 2025/4)
If you are preparing your 2025-26 return, use the rates in TD 2025/4. The overtime meal amount was $38.65. The salary bands were $148,250 or less (Table 1), $148,251 to $263,850 (Table 2) and $263,851 or more (Table 3).
| 2025-26 salary band and location | Breakfast | Lunch | Dinner | Incidentals |
|---|---|---|---|---|
| Table 1, capital cities | $34.75 | $39.10 | $66.65 | $24.50 |
| Table 1, other country centres | $31.15 | $35.55 | $61.30 | $24.50 |
| Table 2, capital cities | $37.85 | $53.45 | $75.00 | $35.05 |
| Table 3, capital cities | $42.15 | $59.60 | $83.40 | $35.05 |
2025-26 Table 1 accommodation per night: Adelaide $158, Brisbane $181, Canberra $178, Darwin $220, Hobart $176, Melbourne $173, Perth $180, Sydney $223 and other country centres $141. 2025-26 truck driver meals were breakfast $31.15, lunch $35.55 and dinner $61.30.
Frequently asked questions
What is the ATO per diem rate for 2026-27?
There is no single per diem figure. For an employee earning $153,210 or less travelling to a capital city, the daily meals and incidentals amount is $170.85 ($36.00 + $40.45 + $69.00 + $25.40), plus the accommodation amount for that city, such as $175 a night in Melbourne.
Do employers have to withhold tax from travel allowances?
Generally no withholding is required on a travel allowance up to the reasonable amount, but amounts above it are treated differently. Employers should check the ATO’s travel allowance withholding guidance and make sure allowances are set up correctly in payroll.
Can I claim the reasonable amount if I did not receive an allowance?
No. The exception from keeping receipts only applies where you receive a genuine allowance. Without an allowance, you need written evidence for your work travel expenses.
Get your travel claims right
Kennedy Tax & Business Services helps employees claim work travel correctly in their individual tax return, and helps employers set up allowances properly through payroll management. Contact our Footscray or Williams Landing office to book an appointment.
This article is general information only and does not take into account your personal circumstances. Figures are taken from ATO Taxation Determinations TD 2026/4 and TD 2025/4. Speak to a registered tax agent before relying on it.
