Australian employees are footing the bill for their employers, with new research revealing some are out of pocket more than AU$20,000 a year just to do their jobs, a new study from global payments experts at Airwallex reveals.
A national survey of 500 Australian employees found nearly three-quarters (70%) of respondents spend up to AU$5,000 annually on business-related costs out of their own pocket. Alarmingly, a further 18% report spending up to AU$15,000, while 5% say they exceed AU$20,000 in annual expenses before being paid back.
Matt Patterson, Head of Sales, SME & Growth, Australia, Airwallex, said, “At a time when the cost of living is already front of mind for Australians, asking employees to cover work costs upfront only adds to the pressure. From flights and client dinners to essential technology and supplies, we’re seeing workers shoulder thousands of dollars on behalf of their companies. It’s no surprise that many are turning to credit cards or dipping into savings to bridge the gap.”
The sectors hit hardest include Financial Services, where more than one in ten (11%) workers report out-of-pocket costs over $20,000, followed by IT/Computing (10%) and Manufacturing (7%).
The real issue highlighted by the research is not only the high payouts faced by many employees, but the long waits to be paid back, with some waiting weeks or even months to be reimbursed. Almost one in 10 respondents (9%) said it takes between three and four weeks to receive their money back, while 3% wait even longer, saying they wait over a month for their employer to pay them back.
For workers already stretched by rising rents, mortgages and everyday expenses, the delays can be crippling. Two-fifths (41%) of employees claim their company waits too long to pay back expenses.
The human cost of outdated systems
The study highlighted several key issues faced by employees regarding expense reimbursements:
- Rising financial Strain: 48% of employees report financial stress due to reimbursement delays, with younger workers (aged 18-27) feeling the impact most acutely (56%).
- Debt risk: 42% rely on credit cards to cover business expenses, risking debt and interest charges if reimbursements are delayed.
- Workplace Consequences: 17% have skipped company events or trips to avoid upfront costs and 34% say they’ve considered leaving a company due to their poor expense system.
A call for change
The findings underscore a clear need for better systems, as 71% of employees believe there should be a more efficient way to manage reimbursements.
As businesses continue to navigate economic uncertainty and talent retention challenges, modernising expense management tools and processes should be a critical step taken by businesses to support employee well-being and financial stability.
Patterson added, “No worker should be thousands of dollars out of pocket just to do their job, yet that’s the reality facing many Australians. At a time when every dollar counts, asking employees to carry their company’s costs is unsustainable.
“At Airwallex, we’re focused on removing unnecessary friction from businesses’ day-to-day financial operations. By simplifying expense management and with tools like instant reimbursements, corporate cards, real-time spend controls, and seamless integrations with accounting platforms, we’re making it easier for businesses to operate and control spend efficiently, at home and abroad.”
