Australian businesses are being urged to tighten their travel expense management ahead of EOFY, with experts warning that rising fuel costs and ongoing inflation pressures could leave many companies out of pocket if legitimate deductions are missed.
While the 2026-27 Federal Budget delivered fresh tax cuts for workers and a suite of new business incentives, travel remains one of the most underclaimed expense categories, according to Flight Centre Travel Group’s SME division, Corporate Traveller, and financial management partner Moneywise.
“The budget places significant emphasis on taxation reform, providing some relief for workers while introducing increased tax obligations for investors through changes to Capital Gains Tax and Negative Gearing,” Moneywise Australia general manager Matt Atkinson said.
“There is genuine relief for workers and some smart business incentives, but travel costs remain under pressure. Now is a good time to review your travel policy and make sure your expense management is tight.”
The Federal Budget includes a reduction for workers with the 16 per cent tax rate dropping to 15 per cent from July 2026 and then to 14 per cent the following year. A new $1,000 instant tax deduction for work-related expenses will also roll out from 2026-27, benefiting an estimated 6.2 million workers.
Businesses also stand to gain from expanded R&D incentives, fresh venture capital tax breaks and a new loss carry-back regime.
But despite the positives, travel budgets are still being squeezed by global instability and stubbornly high operating costs.
Fuel prices remain a key concern as the ongoing Iran conflict continues to impact global oil markets. Although the government introduced a temporary 26.3 cents-per-litre fuel excise cut, industry experts say the relief will be short-lived.
At the same time, inflationary pressure continues to weigh heavily across the economy, with the government’s $18.3 billion spending injection likely to keep attention firmly fixed on the Reserve Bank’s next move on interest rates.
According to Moneywise, travel expenses are one of the most commonly underclaimed business deductions in Australia – not because businesses are failing to spend, but because they are failing to properly document the spend.
“Incidental expenses that were never captured, GST credits that went unrecorded, client entertainment that was not correctly categorised for FBT are all examples of this,” Atkinson said. “These are small amounts individually, but they add up significantly across a team of regular travellers.”
Reconcile all outstanding travel expenses
Flights, accommodation, ground transport and meals connected to legitimate business travel are generally deductible, with GST credits also claimable in many cases. However, the ATO requires businesses to maintain accurate receipts, business purpose documentation and travel records.
Ahead of 30 June, businesses are being encouraged to reconcile all outstanding travel expenses, review corporate card statements for uncategorised spending, ensure entertainment expenses are properly recorded for FBT purposes, and finalise all outstanding expense reports before year-end close.
International travel expenses should also be reviewed carefully to ensure exchange rates have been consistently applied.
“The businesses that manage this without drama are the ones capturing expenses in real time, not reconstructing them in June,” Corporate Traveller global managing director Tom Walley said. “That means having systems in place that record every transaction automatically, so nothing falls through the cracks.”
Looking beyond EOFY, Moneywise is encouraging businesses to use 1 July as a reset point for travel policy and expense systems.
That includes updating meal and accommodation spend limits to reflect current costs, centralising travel bookings to improve visibility and compliance, and integrating travel payment systems directly with accounting platforms such as Xero, MYOB and ProSpend.
Walley said businesses that fail to modernise risk falling behind as operating pressures intensify into FY27.
“This budget brings real change, and businesses need to respond with real action,” he said. “For companies where travel is a regular expense, the next few weeks will determine whether you head into FY27 in control or on the back foot.”
Your pre-30 June checklist
Businesses that travel regularly should prioritise the following before 30 June:
- Reconcile all outstanding travel expenses and confirm receipts are attached
- Review corporate card statements for unclaimed or miscategorised spend
- Identify any FBT-liable entertainment expenses and ensure they are correctly recorded
- Confirm international travel costs have exchange rates consistently applied
- Get all outstanding expense reports submitted before year-end close.
