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An Expense Policy sets clear rules for how employees can spend company money and claim reimbursements. It outlines approved spending limits, acceptable categories like travel and meals, and the proper steps for submitting expense claims with supporting documents.

Australian businesses use these policies to maintain financial control, ensure tax compliance, and prevent misuse of company funds. A well-crafted policy helps organizations meet ATO requirements for record-keeping, protect against fraud, and create consistent standards across teams. It typically includes guidelines for corporate credit cards, per diem rates, and the timeframes for submitting claims.

Put an Expense Policy in place when your business starts growing beyond a handful of employees who regularly spend company money. This becomes especially crucial when you introduce corporate credit cards, approve regular travel expenses, or need to manage multiple office locations across Australia.

The right time to implement this policy is before expense issues arise - it protects your business from ATO scrutiny, prevents fraud, and eliminates confusion about spending limits. Many companies create their policy during budget planning, when setting up new departments, or after noticing inconsistent expense claims that need standardization.

• Independent Contractor Travel Policy: Focuses specifically on travel expense rules for independent workers, including strict documentation requirements for tax purposes
• Contractor Travel Policy: Covers travel-related expenses for general contractors, with emphasis on project-specific cost allocation
• Client Entertainment Policy: Specializes in guidelines for business development expenses, including meals, events, and gifts within FBT compliance limits

• Finance Teams: Create and maintain the Expense Policy, set spending limits, and review claims for compliance
• Department Managers: Approve expense claims, ensure team compliance, and provide feedback on policy practicality
• Employees: Submit expense claims, follow spending guidelines, and maintain required documentation
• External Contractors: Adhere to specific expense rules when billing for project-related costs
• Company Directors: Approve policy changes and oversee major expense decisions
• Auditors: Review expense records for ATO compliance and fraud prevention

• Current Practices: Document existing expense patterns, common reimbursement requests, and payment methods used
• Budget Limits: Set clear spending caps for different expense categories and employee levels
• Approval Chain: Map out who can authorize expenses and at what thresholds
• Documentation Rules: Define required receipts, timeframes for submission, and acceptable proof of purchase
• Tax Compliance: Review ATO guidelines for expense records and FBT implications
• System Integration: Confirm your expense tracking software aligns with policy requirements
• Policy Generator: Use our platform to create a legally sound Expense Policy that includes all essential elements

• Policy Scope: Clear definition of covered expenses, eligible employees, and geographical boundaries
• Spending Limits: Detailed breakdown of maximum amounts for different expense categories
• Approval Process: Step-by-step procedures for submitting and authorizing claims
• Documentation Requirements: Specific rules about receipts, timing, and record-keeping that meet ATO standards
• Payment Methods: Accepted forms of payment and corporate card usage guidelines
• Compliance Statement: Reference to relevant tax laws and FBT obligations
• Enforcement Measures: Consequences for policy violations and dispute re����ֱ�� procedures
• Review Clause: Timeframes for policy updates and amendment procedures

While an Expense Policy and a Fraud Prevention Policy might seem similar, they serve distinct purposes. An Expense Policy focuses on legitimate business spending rules and reimbursement procedures, while a Fraud Prevention Policy covers broader financial misconduct prevention across all company operations.

• Scope and Focus: Expense Policies specifically detail approved spending categories, limits, and claim procedures. Fraud Prevention Policies cover all types of financial misconduct, including expense fraud but also extending to theft, corruption, and misappropriation
• Primary Users: Expense Policies guide all employees making business purchases. Fraud Prevention Policies target finance teams, managers, and compliance officers
• Enforcement Approach: Expense Policies emphasize procedural compliance and documentation. Fraud Prevention Policies focus on detection systems, reporting mechanisms, and investigation procedures
• Legal Requirements: Expense Policies align with ATO guidelines for business deductions. Fraud Prevention Policies must meet broader corporate governance and criminal law obligations