One off car usage reimbursment - PAYG taxable or not?

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Taxduck · Answer

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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