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:

Effective Date Motor Vehicle Allowance Accommodation Allowance
1 July 2016 to 30 June 201766 cents per kilometre$257.95 per night
1 July 2015 to 30 June 201677 cents per kilometre$255.45 per night
1 July 2014 to 30 June 2015 77 cents per kilometre $253.25 per night
1 July 2013 to 30 June 2014 75 cents per kilometre $250.85 per night
1 July 2012 to 30 June 2013 75 cents per kilometre $248.25 per night
1 July 2011 to 30 June 2012 75 cents per kilometre $238.10 per night
1 July 2010 to 30 June 2011 75 cents per kilometre $227.35 per night
1 July 2009 to 30 June 2010 75 cents per kilometre $223.80 per night
1 July 2008 to 30 June 2009 70 cents per kilometre $218.30 per night

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