Dear masters of ATO community:
We are introducing a monthly wellbeing allowance for employees who incur expenses related to gyms, massage, sports shoes, and similar items. This allowance will be a fixed amount and will only be available to employees who provide receipts showing that they have spent at least this specified amount. The processing of this allowance will be done through the payroll system.
I have a question regarding the nature of this allowance. If it is indeed considered an allowance, we still will require receipts for processing. However, if it is not classified as an allowance, we will not reimburse employees for the exact amount they spend. Not sure whether it should be processed as allowance or reimbursement
Furthermore, if this allowance is classified as an allowance and is intended for personal purposes, it should fall under the category of "Other Allowance - Non Deductible Allowance." In that case, will it attract FBT? ( we have set the monthly allowance amount at $60 for each employee who applies for it, and employees can apply for it each month by submitting receipts).
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