Per diem rates are one of the simplest ways to compensate employees for business travel.  Understanding how they work can make business travel easier for your company and make sure you stay tax-compliant. 

Here’s what you need to know. 

What are per diem rates?

With per diem rates, the employer pays the employee a fixed amount to cover expenses and incidentals for business travel. “Per diem” means “per day,” so most per diem rates are set as a daily allowance. 

Per diem rates may be used alongside travel reimbursements, or they may be used independently. A major benefit of per diem rates is that it allows the employee to cover business travel costs without having to keep every receipt.

How are per diem rates calculated in Australia?

For Australian employees, per diem rates are managed by the ATO (Australian Taxation Office). Per diem allowance rates are calculated based on: 

• the employee’s salary 
• the length of time the employee is traveling
• where the employee is traveling 

Since travel and living costs can vary significantly across Australia, the ATO provides different per diem rates for high-cost country centres compared to regional areas. 

What’s covered by per diem rates in Australia

Per diem rates in Australia can be used to cover: 

• accommodation in commercial establishments (domestic travel only) 
• meals and drinks that fall within the time of travel 
• incidental travel expenses (i.e. fees and tips and other small purchases that are necessary business expenses) 

What’s not covered by per diem rates in Australia

Per diem rates generally do not cover transportation (i.e. flights, rental cars). If accommodation is provided by the employer, the employee cannot also claim accommodation amounts for per diem rates. 

How much is per diem in Australia?

Per diem rates in Australia vary based on your income and the area you’re traveling to. 

The salary bands are broken into three tiers: 

• Tier 1: for salaries of $143,650 or less 
• Tier 2: for salaries between $143,651 and $255,670 
• Tier 3: for salaries of $255,671 or more 

Here’s how per diem rates shake out for Australia’s biggest cities, based on salary tiers.

Per diem rates in Sydney, NSW

Per Diem Rates Sydney (2024)

Salary Band

Accommodations

Meal Allowance

Incidentals

Daily total (max)

Tier 1

$198

Breakfast: $33.90 Lunch: $38.10 Dinner: $64.95

$23.95

$358.90

Tier 2

$264

Breakfast: $36.90 Lunch: $52.10 Dinner: $73.10

$34.25

$460.35

Tier 3

$265

Breakfast: $41.10 Lunch: $58.10 Dinner: $81.30

$34.25

$479.75

Per diem rates in Canberra

Per Diem Rates Canberra (2024)

Salary Band

Accommodations

Meal Allowance

Incidentals

Daily total (max)

Tier 1

$178

Breakfast: $33.90 Lunch: $38.10 Dinner: $64.95

$23.95

$341.90

Tier 2

$246

Breakfast: $36.90 Lunch: $52.10 Dinner: $73.10

$34.25

$442.35

Tier 3

$246

Breakfast: $41.10 Lunch: $58.10 Dinner: $81.30

$34.25

$460.75

Per diem rates in Melbourne, VIC

Per Diem Rates Melbourne (2024)

Salary Band

Accommodations

Meal Allowance

Incidentals

Daily total (max)

Tier 1

$173

Breakfast: $33.90 Lunch: $38.10 Dinner: $64.95

$23.95

$333.90

Tier 2

$231

Breakfast: $36.90 Lunch: $52.10 Dinner: $73.10

$34.25

$427.35

Tier 3

$265

Breakfast: $41.10 Lunch: $58.10 Dinner: $81.30

$34.25

$479.75

Per diem rates in Adelaide, SA

Per Diem Rates Adelaide (2024)

Salary Band

Accommodations

Meal Allowance

Incidentals

Daily total (max)

Tier 1

$158

Breakfast: $33.90 Lunch: $38.10 Dinner: $64.95

$23.95

$318.90

Tier 2

$211

Breakfast: $36.90 Lunch: $52.10 Dinner: $73.10

$34.25

$407.35

Tier 3

$211

Breakfast: $41.10 Lunch: $58.10 Dinner: $81.30

$34.25

$425.75

Per diem rates in Brisbane, QLD

Per Diem Rates Brisbane (2024)

Salary Band

Accommodations

Meal Allowance

Incidentals

Daily total (max)

Tier 1

$181

Breakfast: $33.90 Lunch: $38.10 Dinner: $64.95

$23.95

$341.90

Tier 2

$257

Breakfast: $36.90 Lunch: $52.10 Dinner: $73.10

$34.25

$453.35

Tier 3

$257

Breakfast: $41.10 Lunch: $58.10 Dinner: $81.30

$34.25

$471.75

Per diem rates in Perth, WAS

Per Diem Rates Brisbane (2024)

Salary Band

Accommodations

Meal Allowance

Incidentals

Daily total (max)

Tier 1

$180

Breakfast: $33.90 Lunch: $38.10 Dinner: $64.95

$23.95

$340.90

Tier 2

$245

Breakfast: $36.90 Lunch: $52.10 Dinner: $73.10

$34.25

$441.35

Tier 3

$265

Breakfast: $41.10 Lunch: $58.10 Dinner: $81.30

$34.25

$479.75

Per diem accommodation rates in Australia

For other cities in Australia, per diem rates for meals and incidentals remain the same across salary bands, while accommodation rates vary.

Here are per diem accommodation rates for some common country centres. See the ATO for full list of country centres and per diem accommodation rates.  

Per Diem Accommodation Rate for Australian Country Centres:

City

Tier 1 Salary

Tier 2 Salary

Tier 3 Salary

Darwin

$220

$293

$293

Hobart

$176

$235

$235

Bendigo

$164

$164

$207

Cairns

$175

$175

$207

Broome

$220

$220

$220

Exmouth

$214

$214

$214

Kalgoorlie

$181

$181

$207

Wollongong

$181

$181

$207

Newcastle

$195

$195

$207

Jabiru

$216

$216

$216

Other country centres

$141

$188

$207

Per diem rates for international business travel

For international business travel, per diem rates are set by income tiers and destination. With overseas travel, accommodation expenses are always accounted for separately. 

Alternatively, employers can use a business travel booking platform like TravelPerk to easily book, manage, and expense employee’s overseas accommodations and other travel expenses. 

For meals and incidental expenses, countries are split into six cost groups. Here’s how the per diem rates break down. 

Per diem rates for international business travel, Tier 1 Salary:

Cost group

Meals

Incidentals

Total

1

$75

$25

$100

2

$110

$30

$140

3

$150

$35

$185

4

$195

$35

$230

5

$235

$40

$275

6

$280

$45

$325

Per diem rates for international business travel, Tier 2 Salary:

Cost group

Meals

Incidentals

Total

1

$95

$25

$120

2

$130

$35

$165

3

$175

$40

$215

4

$215

$45

$260

5

$290

$50

$340

6

$360

$50

$410

Per diem rates for international business travel, Tier 3 Salary:

Cost group

Meals

Incidentals

Total

1

$120

$30

$150

2

$180

$40

$220

3

$230

$45

$275

4

$290

$50

$340

5

$365

$60

$425

6

$415

$60

$475

Cost groups by country

Austria

5

Belgium

5

Canada

5

Chile

3

China

5

Denmark

6

Egypt

3

Fiji

3

France

5

French Polynesia

6

Germany

5

Greece

4

Hong Kong

6

India

3

Indonesia

3

Ireland

6

Japan

5

Korea Republic

5

Malaysia

3

Morocco

3

Netherlands

5

New Zealand

4

Philippines

4

Qatar

6

Singapore

6

South Africa

2

Switzerland

6

Taiwan

5

United Kingdom

5

United States of America

6

Making business travel easier

Per diem rates are an excellent way to reimburse employees for the costs of business travel while reducing administrative burden for employees, management, and finance teams. 

Since per diem rates won’t cover every expense, you can further reduce administrative burden by managing employee travel through one of the best business travel agencies in Australia. With a travel booking platform on your side, your employees can book, expense, and manage travel faster than ever. 

FAQs on Australian Per Diem Rates

Do you need to keep receipts for per diem rates in Australia?

Are per diems taxable in Australia?

How are per diem rates paid in Australia?