Living Expenses – What Can I Claim?
You can salary package eligible everyday living expenses, whether they do or don’t include GST, provided the expense has been paid by you or your spouse/partner, meets eligibility requirements, and is supported by valid documentation. Certain expenses and prohibited items cannot be claimed.
What you can claim
- Utilities (electricity, gas, water, phone services)
- Council rates
- School fees
- Health insurance premiums
- Life insurance premiums
- Home and contents insurance
- Car insurance
- Credit card repayments (including spouse/partner credit cards, subject to eligibility)
- Groceries (both GST-free and GST-inclusive items, where supported by appropriate documentation)
- Domestic flights
- Overseas travel costs (where permitted under the applicable benefit rules)
- Public transport tickets
- Household appliances (e.g., fridge, freezer, microwave, washing machine)
What you can't claim
- Cash advances on credit cards
- Expenses not paid by you or your spouse/partner
- Fines, penalties, or expiation notices
- Gambling expenses
- Firearms and ammunition
- Tax debts
- Illegal drugs or banned substances
- Expenses that can be claimed through your tax return (e.g., work-related expenses, tax agent fees, charitable donations)
- Expenses excluded from salary packaging under your employer's salary packaging policy
Documentation Requirements
To process a Living Expenses claim, you must provide acceptable evidence that confirms the expense and payment details.
Acceptable Documentation
To support assessment of a claim, customers may be required to provide documentation that demonstrates:
- The nature of the expense
- The amount charged
- The person who incurred the expense
- The person who paid the expense
- Any applicable GST information
- Proof of payment
Documentation That Cannot Be Accepted
The following documents are generally insufficient on their own to support a claim:
- EFTPOS receipts without supporting tax invoices or itemised receipts
- Receipts that do not clearly identify the goods or services purchased
- Documents that cannot be adequately verified
- Non-English documentation without an acceptable translation
- Credit card statements that do not meet minimum documentation requirements
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Scenario-Based Examples
Can I claim my council rates bill?
James submits a rates notice that shows the amount due and payment details. Council rates are an eligible living expense, so James can claim the expense as long as he provides a valid tax invoice and proof of payment.*
Can I claim my electricity bill?
Sarah submits her quarterly electricity bill, which includes GST. Because utility bills are eligible living expenses, Sarah can claim the bill as long as she provides a valid tax invoice and proof of payment.*
Can I claim my weekly supermarket shop?
Michael purchases groceries including fresh fruit, vegetables, and packaged goods. Michael can claim his grocery purchases when supported by appropriate proof of payment.*
Can I claim a credit card repayment?
Emma submits a credit card statement in her name showing eligible repayments. Emma can claim credit card repayments provided the underlying purchases do not include any ineligible expenses, such as cash advances or fines.*
Can I claim a speeding fine?
Daniel submits a speeding fine for reimbursement. Daniel cannot claim, fines and penalties as these expenses are specifically excluded.*
Can I claim an expense paid by a friend?
Priya submits an invoice that was paid by a friend. Expenses not paid by you or your spouse/partner cannot be paid. So, Priya cannot claim this expense unless she can provide evidence that she reimbursed the cost.*
Can I claim an overseas expense?
Noah submits an overseas hotel invoice and a credit card statement showing the Australian dollar conversion. Noah may be able to claim the overseas expenses when supported by valid tax invoice, proof of payment and evidence of the AUD conversion.*
Can I claim a new washing machine?
Olivia purchases a washing machine for her home and provides a valid tax invoice and proof of payment. Household appliances are generally eligible Living Expenses benefit. So, Olivia can claim this expense with valid evidence.*