Company pays actuals, and also has an additional 'benefit' of being able to buy a gift (up to $75) if you stay with friends or family. I think it is a great idea, catch-up with friends or family, buy takeaway, and a gift for them (good bottle of wine you can share).
Also believe we have done some modelling that shows over time paying actuals is cheaper than paying ATO per diem rates for meals and incidentals.