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Dhruv8855(Newbie)Newbie
25 Sept 2024

Hi Guys,


Just would like to have a clarification for car allowance.

Actually, my employer gives me 10K as a car allowance which was agreed based on my contract with them as a non taxable and from the payslip we can verify that the number doesn't add up in my gross income as well.

however just yesterday i submitted all my income statements and when i receive the estimate from my tax agent, then she said your allowance will be taxable and won't be considered as a separate. so don't know what to do as i have payslips as an evidence only. is there anything i am misunderstanding or i can claim my allowance as per the payslips as a non taxable?

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436 views
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TobyJDodd(Devotee)Registered Tax Professional
26 Sept 2024

Hi @Dhruv8855


Allowances are taxable. You can't just agree something is not taxable.


It think you are mixing up the fact your employer is not withholding tax from the allowance (and therefore maybe saying it's not taxable)


Toby

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Most helpful reply

TobyJDodd(Devotee)Registered Tax Professional
26 Sept 2024

Hi @Dhruv8855


Allowances are taxable. You can't just agree something is not taxable.


It think you are mixing up the fact your employer is not withholding tax from the allowance (and therefore maybe saying it's not taxable)


Toby

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Taxable or non taxable car allowance ? | ATO Community