I travel 70000+ business related kms per annum. I am paid an allowance per km that has always been paid to me tax-free, and I then have to reconcile this at tax time with deductions for my expenses etc, resulting in either a debt or tax refund dependent on my expenses for the financial year.
This financial year, my employer has started taxing me on any kms over 5000 (which for me, is the vast majority). I asked why and was advised that a recent recommendation from the ATO is to apply tax to any kms above the initial 5000km.
As I travel so much, this will eat into my fortnightly allowance considerably, and though I will get a lot back when I compete my tax return, is not ideal as I need the allowance to cover the running costs of my vehicle.
My question then, is it a MANDATORY requirement this financial year that tax be applied to the kms above 5000, or can I request my Employer to continue to pay my travel allowance without it being taxed? I have struggled to find an answer online. Thanks in advance.
1,505 views
2 replies