What is the difference between a reimbursement and an allowance?

A reimbursement pays back an actual expense the employee incurred and evidenced. It is not taxable to the employee, does not attract superannuation guarantee, and is not reported as income through STP. An allowance is a set amount paid regardless of what was actually spent. It is generally taxable, often attracts super, and is itemised under STP Phase 2. If there are no receipts and the amount is round, it is probably an allowance.

Does the business pay super on reimbursed expenses?

No, not on a genuine reimbursement — it is not ordinary time earnings. Allowances are different, and whether super applies depends on the type of allowance. That is another reason to keep the two clearly separated rather than paying everything through one line.

Can the business claim GST on an employee expense claim?

Generally yes, where the employee incurred the expense on behalf of the business and it is a taxable purchase — provided the business holds a tax invoice where one is required. The GST column on this form separates it per line so the credit can be claimed correctly rather than estimated.

Do employees need a receipt for everything?

For purchases of $82.50 including GST or less no tax invoice is required to claim the GST credit, but a record of what it was and that it was for the business still is. Above that, a valid tax invoice is needed. The receipt-attached column exists so a claim missing one is visible before it gets paid.

What if a receipt has been lost?

Have the employee note it and describe the purchase. For small amounts a bank or card statement plus a written explanation is often workable; for larger amounts the GST credit is at risk without the tax invoice. Set a policy on it rather than deciding case by case — that is what a record-keeping policy is for.

How often should claims be submitted?

Monthly is usual and works well with a pay cycle. Longer than that and receipts get lost and the coding becomes archaeology. Set a cut-off and hold it, otherwise claims arrive in the middle of a BAS preparation.

Should reimbursements be paid through payroll?

They can be, but keep them clearly separate from wages so they are not treated as income for PAYG, super or STP purposes. Many businesses pay reimbursements as a separate bank transfer for exactly that reason — it removes any chance of the amount being swept into gross wages.

FREE EXCEL TEMPLATE Last updated 28 August 2026

Employee expense claim form for Australian businesses

One form per claim period, with GST separated so the business can claim the credit, a receipt-attached column, and employee declaration plus manager approval on the same sheet.

Employee expense claim form

Excel (.xlsx) · 20 lines · no signup

GST calculated at 1/11th per line

Receipt-attached tracking column

Employee declaration and approval

Account coding column for the bookkeeper

General information only, not tax or accounting advice.

This template is general information for Australian businesses. GST treatment, account coding, reporting obligations and deduction eligibility depend on your circumstances — confirm them with your accountant, a registered BAS agent or the ATO. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

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What's in the expense claim form

Everything needed to pay a claim and post it correctly.

Employee details

Name, number, department or site, claim period and payment method.

20 claim lines

Date, description, supplier, account or reason, amount and GST.

Automatic GST

Flag a line Y and GST calculates at one eleventh. Flag it N for GST-free purchases.

Receipt tracking

A yes/no column per line, so a claim missing substantiation is visible before it is paid.

Declaration and approval

Employee declares the expenses were business; a manager approves before payment.

Posted-by line

Who coded and posted the reimbursement, and when — the audit trail bookkeepers want.

Reimbursement or allowance? The distinction matters

They are treated completely differently for tax, super and STP.

	Reimbursement	Allowance
What it is	Paying back an actual expense, evidenced	A set amount paid regardless of spend
Receipts	Required (above $82.50 inc GST)	Not required
Taxable to the employee	No	Generally yes
Superannuation guarantee	No	Often yes
STP reporting	Not reported as income	Itemised under STP Phase 2
GST credit	Business can generally claim	No

If you are paying a round figure with no receipts, it is almost certainly an allowance, not a reimbursement — and treating it as a reimbursement understates tax, super and your STP reporting.

Australian rules that apply to expense claims

The GST and substantiation rules are the same as any business purchase, with one useful threshold.

GST on reimbursed expenses

Where an employee incurs an expense on behalf of the business and is reimbursed, the business can generally claim the GST credit — provided it holds a tax invoice where one is required.

The $82.50 threshold

No tax invoice needed for purchases of $82.50 including GST or less. A record of what it was and that it was for the business is still required.

Five-year retention

Keep the form and the receipts for five years, like any business record. A claim form with nothing behind it will not support the deduction or the credit.

Approval before payment

A manager approval line is a control, not paperwork. It is the step that catches a personal expense before it is reimbursed.

Reimbursements are not wages

A true reimbursement of a business expense is not salary or wages. It is not taxed, does not attract superannuation guarantee, and is not reported through Single Touch Payroll as income.

That is exactly why the distinction from an allowance matters, and why this form has a declaration and receipt column rather than just an amount box. Getting it wrong understates PAYG withholding and super at the same time.

How the claim process works

Four steps, with the approval deliberately before the payment.

1. Employee completes the form

One form per claim period, with every receipt attached or scanned.

2. Manager approves

Checks the expenses were genuinely business and the receipts are there.

3. Bookkeeper codes it

Each line coded to an account, GST separated, ready to post.

4. Reimburse and file

Pay it, record who posted it, and file the form with its receipts.

Paying first and approving later is how personal expenses end up reimbursed. Keep the order.

Who uses an expense claim form

Any business with employees

As soon as staff buy anything on the business behalf, you need a claim process rather than an ad hoc transfer.

Multi-site operators

Where site managers buy consumables and a per-site record matters.

Bookkeepers standardising a client

A consistent form is what makes coding reimbursements fast rather than forensic.

For accountants & bookkeepers

Do your clients reimburse staff without a process?

Expense claims, allowances and award entitlements all land on the same bookkeeper, and all three are treated differently for super and STP. Advisors who bring shift-based clients onto RosterElf earn recurring monthly income for every employee managed.

Recurring monthly income

$1.00–$2.00 per active employee

Signup bonus

$100 per new client business

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Definitions

Plain-English explanations of the terms used on this page.

Tax invoice

What tax invoice means for an Australian business.

Learn more

Ordinary time earnings

What ordinary time earnings means for an Australian business.