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MC1985(Initiate)Initiate
8 Sept 2021

Hi,

Just wondering!we pay our employees the award car allowance, for when they use their cars for work purposes at the award amount of 80c per km.Our employees do under 5,000 km. when i look at the tables on the ato website i am unsure which on to use. We are trying to work out if tax should be withheld and super paid or not.

Can you please advise which table i need to look at and if we are required to with hold.

Getting confused as we are going off the rate from the award not the ato rate.

Thank you

1,676 views
5 replies
1,676 views
5 replies

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Most helpful reply

TonyATO(Community Support)Community Support
9 Sept 2021

Hi @MC1985

You don't need to pay super on an expense allowance that is expected to be used in full by them.

But, you need to withhold from the excess over the approved rate, which is ​currently 72 cents per km. If you're paying 80c per km, the excess will be 8c per km (80c minus 72c).

You can find this info under Table 2a Cents per kilometre car expense payments using the approved rate

:)

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Most helpful reply

TonyATO(Community Support)Community Support
9 Sept 2021

Hi @MC1985

You don't need to pay super on an expense allowance that is expected to be used in full by them.

But, you need to withhold from the excess over the approved rate, which is ​currently 72 cents per km. If you're paying 80c per km, the excess will be 8c per km (80c minus 72c).

You can find this info under Table 2a Cents per kilometre car expense payments using the approved rate

:)

MC1985(Initiate)Initiate
9 Sept 2021

Thank you for your reply. :smileyhappy:Could you please explain what is table 3 used for, as this was the one i was looking at. As it says award transport payments.

TonyATO(Community Support)Community Support
9 Sept 2021

Hi @MC1985

Sorry, I should've clarified this for you.

Table 3 is for Award Transport Payments, which are allowances covering either transport expenses or car expense reimbursements paid under an industrial law or award in force on 29 October 1986.

:)

RichATO(Community Support)Community Support
11 Sept 2021

Hello @MC1985

Are you sure that you are required to pay your employees under an industrial award which requires the payment of a car allowance ?

You can check on the Fair Work Commission site here.

Ok, let's say you are definitely covered by a relevant award which requires the payment of a transport allowance. Then yes, it's table 3 which applies to you situation.

You originally said " We are trying to work out if tax should be withheld and super paid or not. " As per table 3a, it's the last row that applies here for non-deductible transport expenses. Yes you withhold tax and Yes you pay the super guarantee on this allowance.

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