The 2026-27 Australian Federal Budget delivered tax cuts for workers and new business incentives, but for companies where travel is a regular expense, rising fuel costs and inflationary pressures mean the next few weeks are critical to avoid leaving legitimate deductions on the table.
Flight Centre Travel Group’s SME specialist, Corporate Traveller, in partnership with financial manager and tax agent Moneywise, is advising businesses to prioritise travel expense reconciliation before 30 June.
“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,” said Matt Atkinson, general manager of Moneywise Australia.
“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.”
According to Moneywise, business travel is one of the most consistently underclaimed expense categories in Australia, not because businesses do not spend the money, but because they cannot substantiate it when it counts.
Incidental expenses that were never captured and client entertainment that was not correctly categorised are examples of this, Atkinson noted, who points out these are small amounts individually, but add up significantly across a team of regular travellers.
Flights, accommodation, ground transport, and meals during genuine business travel are generally deductible, and GST credits apply as well. The ATO requires receipts, business purpose, dates and documentation.
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.
“The businesses that manage this without drama are the ones capturing expenses in real time, not reconstructing them in June,” said Tom Walley, global managing director at Corporate Traveller. “That means having systems in place that record every transaction automatically, so nothing falls through the cracks.”
Moneywise recommends reviewing three areas in early July:
- Update your spend limits.If travel meal and accommodation caps have not changed since pre-rate-rise conditions, they are almost certainly out of step with actual costs. Employers should check limits against the ATO’s reasonable amounts guidance for FY27 and adjust accordingly.
- Centralise your bookings.Ad hoc bookings through personal platforms are harder to reconcile, misnegotiated rates, and generate fragmented data. Centralised payment systems automatically capture every transaction through a single account, with a single consolidated statement, removing the manual work at month-end.
- Connect your systems.If travel spend still lives separately from accounting software, the manual reconciliation between the two is costing finance teams time and creating opportunities for error. Many modern travel payment solutions now integrate directly with platforms such as MYOB, Xero, and ProSpend, eliminating double handling.
“This budget brings real change, and businesses need to respond with real action,” Walley added. “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.”
