Expense Policy Generator
Generate an expense policy with approval thresholds, spending limits, and receipt requirements. Download as PDF - free, no sign-up.
Company Details
Approval Thresholds
Expense Categories & Limits
Policy Details
Accent Colour
This policy outlines the guidelines and procedures for business-related expenses incurred by employees of [Company Name]. It ensures consistent, fair, and transparent handling of expense claims.
This policy applies to all employees, contractors, and directors of [Company Name] who incur expenses on behalf of the business.
| Category | Limit (AUD) | Period |
|---|---|---|
| Meals & Entertainment | $80 | per transaction |
| Domestic Travel | $500 | per day |
| International Travel | $1,000 | per day |
| Accommodation | $250 | per day |
| Transport | $100 | per day |
| Office Supplies | $200 | per month |
All expenses must be pre-approved where possible. The following approval thresholds apply:
| Amount (AUD) | Required Approver |
|---|---|
| Up to $500 | Direct Manager |
| Up to $5,000 | Director |
| Up to $99,999 | CFO |
Receipts required for all expenses over $25 AUD
Employees must submit expense claims within 30 days of incurring the expense. Claims should include all required receipts and be submitted through the approved expense management system.
Reimbursement Timeline: 14 business days from submission of approved claim
The following expenses are not reimbursable:
- Personal expenses not related to business activities
- Fines, penalties, or parking violations
- Expenses for family members or personal guests
- Alcoholic beverages (unless pre-approved for client entertainment)
- Upgrades beyond standard class (unless pre-approved)
- Personal subscriptions or memberships
Corporate credit cards are issued at the discretion of management. Cardholders are responsible for all charges on their card and must submit monthly reconciliation statements with supporting receipts.
Failure to comply with this policy may result in disciplinary action, including but not limited to repayment of non-compliant expenses, suspension of expense privileges, or termination of employment. All employees are required to read, understand, and acknowledge this policy.
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Why every business needs a documented expense policy
An expense policy sets clear boundaries on what employees can spend, how much requires approval, and what documentation is needed for reimbursement. Without one, businesses rely on individual judgment - which leads to inconsistent spending, disputed reimbursements, and GST input tax credit issues when receipts are missing.
The ATO requires businesses to retain records of all business expenses for at least five years. A structured expense policy that mandates receipt collection and defines what constitutes a legitimate business expense protects your GST claims and simplifies BAS preparation. It also provides the documentation needed if the ATO requests substantiation of deductions.
How to use this expense policy generator
- Enter your company details: Add your business name, ABN, and the effective date for the policy. This ensures the document is clearly attributed and version-controlled.
- Define expense categories and limits: Set spending caps for common categories such as travel, meals, accommodation, office supplies, and professional development. Specify per-transaction and per-month limits where appropriate.
- Set approval thresholds: Define which expenses can be self-approved (e.g. under $50), which require manager approval, and which need director or finance sign-off. Tiered thresholds prevent bottlenecks while maintaining oversight.
- Configure receipt and documentation rules: Specify whether receipts are required for all expenses or only above a certain threshold, and set the submission deadline (e.g. within 14 days of incurring the expense).
- Download and distribute: Export the policy as a PDF, have it reviewed by your finance team or accountant, then distribute to all employees alongside your onboarding pack.
ATO record-keeping and FBT considerations
Under Australian tax law, businesses must substantiate every expense claimed as a deduction. For GST-registered businesses, this means retaining tax invoices for purchases over $82.50 (inc GST) to claim input tax credits. Your expense policy should make clear that employees must obtain and submit compliant tax invoices - not just EFTPOS receipts, which often lack the supplier's ABN and GST breakdown. Expenses reimbursed to employees may also trigger Fringe Benefits Tax (FBT) obligations. Meal entertainment, for example, is subject to FBT unless it falls within the minor benefits exemption (currently under $300 per benefit). A well-drafted expense policy that sets category-specific limits aligned with FBT thresholds can significantly reduce your FBT exposure.
How AP automation enforces expense policies
A written policy only works if it is consistently enforced. When expense claims and supplier invoices are processed manually, policy breaches slip through - over-limit purchases get approved, receipts go missing, and reimbursements are paid without proper documentation. Automating accounts payable creates system-enforced controls: approval routing based on dollar thresholds, mandatory receipt attachment before processing, automatic flagging of out-of-policy spending, and a complete audit trail for every transaction. This turns your expense policy from a PDF that sits in a shared drive into an active control embedded in your payment workflow.
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