We currently pay staff a vehicle allowance of the award rate$0.91/km travelled for work related reasons. I know this is taxable and it is paid through payroll as an allowance.
My question is, is the taxable vehicle allowance included in the IAS and BAS W1 wages and salary amounts we report to the ATO?
Hiya @Dawn_OQ 👋
I think your "vehicle allowance" is probably a c/km allowance as per this post?
Yes, payments subject to withholding, such as a c/km allowance, are included in W1, even if whole or part of the payment meets all of the ATO conditions to vary the withholding to nil.
Deanne
Hiya @Dawn_OQ 👋
I think your "vehicle allowance" is probably a c/km allowance as per this post?
Yes, payments subject to withholding, such as a c/km allowance, are included in W1, even if whole or part of the payment meets all of the ATO conditions to vary the withholding to nil.
Deanne
15 Apr 2026 · 4 min read time
16 July 2025 · 5 min read time
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