Half of Australian workers are financially stressed by out-of-pocket job costs

Shocking new figures reveal Australian workers are forking out thousands in work expenses, with some spending more on business costs than a house deposit.

Australians are footing the bill for their bosses, with some workers forking out more than $20,000 a year just to do their job.

Almost half of Aussie workers say out-of-pocket business expenses are leaving them financially stressed, with two-in-five forced to wait too long for reimbursement, new research reveals.

Nearly three-quarters of Australians spend up to $5000 annually on upfront work costs, according to the research from global payment expert Airwallex.

Almost half of Aussie workers say out-of-pocket business expenses are leaving them financially stressed. Picture: iStock

Alarmingly, almost one-in-five workers are out of pocket by up to $15,000 a year, while five per cent say their annual upfront employment expenses reach a whopping $20,000 or more before they are paid back.

“No worker should be thousands of dollars out of pocket just to do their job yet that’s the reality facing many Australians,” said Airwallex spokesman Matt Patterson.

“At a time when every dollar counts, asking employees to carry their company’s costs is unsustainable.”

‘IMPACT MY MORTGAGE’

Common expenses that workers were paying for upfront included flights, accommodation, client dinners, essential technology and stationery, Mr Patterson said.

More outlandish business expenses included cigarettes, Thai massages, psychic readings and even alpaca yoga and taxidermy kangaroos.

In a former role working in radio, Chloe Jeffers was once required to use her personal credit card to pay for a camel that was part of an on-air promotions campaign.

“I definitely think the camel was the most unique (work-related expense) that I’ve been involved in,” Ms Jeffers said.

“We had to pay in cash (upfront) because (the camel handler) had come from the country and he said, ‘I’m not coming unless you pay me right now’.”

Chloe Jeffers, client director with Thrive PR + Communications. Picture: Supplied

Ms Jeffers, now a client director with public relations agency Thrive PR + Communications, which uses Airwallex to provide staff with corporate credit cards so they don’t have to personally pay for work expenses, said she also footed the bill for a florist during a radio stunt involving “quickie weddings”.

She said having to pay upfront for work expenses had a significant impact on her finances at the time.

Now, with a mortgage and a child to support, she expected it would cause further stress.

“My living expenses each month are quite high, with a mortgage, life insurance, health insurance and school (fees) so … I do have to manage my cash flow,” Ms Jeffers said.

“If I had (to pay upfront for) a $5000 (work) expense and it took a couple of weeks to be paid back then that would come from my offset account and it could impact my mortgage.”

IS IT REASONABLE?

According to Airwallex, 42 per cent of Australians rely on their personal credit cards to cover business expenses, risking debt and interest charges if reimbursements are delayed.

To minimise the financial pain, 17 per cent of workers say they have skipped company events or trips to avoid the upfront costs, while 34 per cent have considered leaving their job due to their company’s poor expense system.

Lawyer Jo Alilovic, director of 3D HR Legal, said employers were entitled to expect workers to make upfront payment for “reasonable” business-related expenses, such as meals away while working or urgent stationery requirements.

Common expenses that workers were paying for upfront included flights, accommodation, client dinners, essential technology and stationery. Picture: iStock

But she conceded what constituted a reasonable expense could be subjective and recommended workers required to make upfront payments get an agreement in writing about when they would be reimbursed.

Depending on the company’s pay cycle, reimbursement should take no more than a month, Ms Alilovic said.

“If you are being asked to make a payment that’s related to your work, the first thing I would ask myself if, ‘Is it reasonable for me to pay this? Is it a small payment or a big amount?’ and ‘Is it urgent right now or something that could be paid in advance?’ That focus will determine what is reasonable,” she said.

Ms Alilovic said it would be unreasonable to force workers to pay upfront for business expenses if they had informed their employer they did not have the funds to do so.

THE HIGH COST OF WORK

Indeed career expert Sally McKibbin said many Australians were struggling with work-related expenses, including job seekers, who were spending hundreds of dollars just to attend an interview.

Research from the global job site showed the financial toll of job hunting has skyrocketed, with almost two-thirds of candidates spending up to $99 per job search.

One-in-seven spend more than $200.

Ms McKibbin said job seekers were forking out for new clothing, professional resume writing, transport to attend interviews and childcare.

Sally McKibbin, career expert at job site Indeed. Picture: Supplied

Almost one-in-five reported losing income due to taking time away from work to attend interviews, prompting calls from both candidates and employers for job seekers to be financially compensated.

“The dollars are not stretching as far as they used to so the pressure of using your money on things that may not even guarantee you (get hired) can be stressful,” Ms McKibbin said.

She said requesting an interview over Zoom rather than face-to-face and wearing the same outfit for multiple interviews could reduce some of the financial burden.

Ms Alilovic said it was illegal for employers to ask for upfront payment for pre-employment medicals and other checks and training courses required to perform a role.

EMPLOYMENT COSTS

• Nearly three-quarters (70 per cent) of Aussie employees spend up to $5000 annually on work expenses.

• Two-fifths (41 per cent) of employees say their company waits too long to pay back expenses.

• Nearly half (48 per cent) of employees say paying expenses out of their own pocket causes financial difficulties.

•.A third (34 per cent) of workers have considered leaving a company that has a poor expense system.

•.Almost three-quarters (71 per cent) of employees believe there should be a more efficient way to manage reimbursements.

Source: Airwallex.

Originally published as Half of Australian workers are financially stressed by out-of-pocket job costs