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ChrisPyne(Dynamo)Dynamo
7 Aug 2024

Hi,

I have read some of the posts on mileage payments and found them very useful, but we have a situation which is slightly different. To assist employees when one of our sites moved to a new location, we have agreed to pay them for the extra KMs travelled, in other words, the difference in KMs between their homes and the old site and their homes and the new site (something not normally re-imbursed or deductable). This is not stipulated in their EBA, we are paying an agreed amount per KM is lower than that specified by the ATO and the amount will decrease after a certain time and eventually the payment will cease altogether, based on my understanding of what I have read on posts and the ATO website, I believe this paymentshould be fully taxed and attracts super and I was hoping someone could please confirm.

Many thanks,

ChrisPyne

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TobyJDodd(Devotee)Registered Tax Professional
7 Aug 2024

Hi @ChrisPyne


You are correct. The payment will form part of OTE and super is payable.


https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay/list-of-payments-that-are-ordinary-time-earnings


Toby

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