Hi,
I need help, Under the SCHADS award, every time we use our personal car to support a client, we have a car/travel allowance of 0.99 cents per kilometer. Question about the car or travel allowance, is that subject to PAYG and can it attract super?
Thank you for the help.
An allowance for using your car is taxable income and will be listed on your payment summary or income statement under allowances. Use of your car for deductible travel should be claimed by using either the cents/km or logbook method.
This type of allowance does not attract super. It is not part of ordinary hours of work used as the basis for the super guarantee. Link below explains
How much super to pay | Australian Taxation Office (ato.gov.au)
An allowance for using your car is taxable income and will be listed on your payment summary or income statement under allowances. Use of your car for deductible travel should be claimed by using either the cents/km or logbook method.
This type of allowance does not attract super. It is not part of ordinary hours of work used as the basis for the super guarantee. Link below explains
How much super to pay | Australian Taxation Office (ato.gov.au)
Hiya @JohnBall 👋
Cents per Km allowances paid by your employer under an Award like SCHADS is a "payment subject to withholding" but the withholding is varied to nil on payments up to 5,000 business km for the portion of the rate that doesn't exceed the ATO reasonable rate, if the conditions are met.
That is, when you claim the allowance from your employer, if it is for a business purpose (narrowly defined by the ATO) and for a car that you own, lease or hire, then of your 0.99c/km, your employer doesn't withhold on 0.88c of the 0.99c allowance and is required to withhold on the remaining 0.11c of the allowance, up to 5,000km, then the whole allowances is taxed, as for your salary and wages.
Because you are being paid an amount under the Award, it is deemed to be "fully expended" and is therefore not OTE and not superable.
It is reported as income and you will see it on your Income Statement and you can claim a deduction in your tax return as per the ATO guidance.
As per my other post to an employer asking about taxing the c/km allowance.
Deanne
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