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indycling(Newbie)Newbie
15 Mar 2024

HI


Have used my personal car for a one off work trip (to visit a supplier) - normally I'm do not leave the office.


I put in for a reimbursement using the ATO km rate.


I was refunded the money but it has been included in my gross pay and attracted PAYG.


To me this seem equivalent of Including any payments made using a credit card as 'additional income" in my tax return -- which i obviously don't.


Can someone calrify for me if this one off payment should have been included in my gross pay and attracted PAYG?


Thanks !

Andrew


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377 views
2 replies

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Taxduck(Taxicorn)Taxicorn
15 Mar 2024

It's not treated as a reimbursement because the amount you receive for the travel is not a reimbursement of the cost of the travel. With tools, your employer can reimburse you the cost of the tool as they know exactly how much it cost. Using your own vehicle, your employer has no way of knowing exactly how much the travel cost you. (i.e in fuel, wear and tear on your vehicle). So you are paid an allowance to help cover the cost. You can then claim back the cost using the cents/km ATO rate if it is a car. If your vehicle is not defined by the ATO as a car (i.e commercial vehicle) then you need to keep fuel receipts.

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indycling(Newbie)Newbie
15 Mar 2024

Apologies. Can see how to edit or delete. While refund showed as part of my gross pay it did not attract PAYG and am told it should appear on my group certificate separately as an allowance which I'm then to claim as am expense.


Not sure why this expense is not treated like the rest of the reimbursements I've received in the past (I.e. buying a tool for work) that were paid directly into my account with no mention on the pay slip.


Ta! Andrew


Most helpful reply

Taxduck(Taxicorn)Taxicorn
15 Mar 2024

It's not treated as a reimbursement because the amount you receive for the travel is not a reimbursement of the cost of the travel. With tools, your employer can reimburse you the cost of the tool as they know exactly how much it cost. Using your own vehicle, your employer has no way of knowing exactly how much the travel cost you. (i.e in fuel, wear and tear on your vehicle). So you are paid an allowance to help cover the cost. You can then claim back the cost using the cents/km ATO rate if it is a car. If your vehicle is not defined by the ATO as a car (i.e commercial vehicle) then you need to keep fuel receipts.

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One off car usage reimbursment - PAYG taxable or not? | ATO Community