Allowances

Generally, all allowances paid or payable to an employee are taxable for payroll tax purposes under Part 3, Division 6. However, there are specific provisions, which apply to motor vehicle allowances and overnight accommodation allowances. The Payroll Tax Act 2009 provides that motor vehicle allowances and overnight accommodation allowances are not considered wages unless they exceed the exempt component. If the allowance exceeds the exempt allowance then only that amount is included as wages for the purpose of the Payroll Tax Act 2009.

The exempt rates for motor vehicle and accommodation allowances are as follows:

  • Motor Vehicle Allowance - 66 cents per kilometre
  • Accommodation Allowance - $257.95 (Room $132.00, Incidentals $19.95, Meals $106.90)

A list of previous years allowances is available on our Rates and Thresholds page.

Information regarding the treatment and calculation of motor vehicle and accommodation allowances is available in Revenue Ruling PTA011: Allowances & Reimbursements