Based on ATO, laundry allowance is non-taxable up to threshold amount and it will become taxable once it's over threshold amount.
Can you please specify what is the current threshold amount for laundry allowance?
If my employer simply pay my laundry allowance as taxable allowance regardless of the threshold amount, are they still compliant?
Thank you.
Hiya @K70001 👋
The threshold amount for laundry allowance only applies for qualifying uniforms.
The amount is defined in TR 98/5. The ATO requires the employer to reduce the withholding to nil up to the threshold and therefore withhold as for salary and wages.
Deanne
Hiya @K70001 👋
The threshold amount for laundry allowance only applies for qualifying uniforms.
The amount is defined in TR 98/5. The ATO requires the employer to reduce the withholding to nil up to the threshold and therefore withhold as for salary and wages.
Deanne
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