You will receive a local living allowance of $1000 per week. This allowance is provided to support your living expenses while working locally and is payable in addition to your regular salary. The location is Port Hedland. My understanding is that this should be a taxable allowance. As this is expected to be used in full for living expenses, this would not be superable? The manager has also queried if this would be FBT Applicable? From what I can see on the ATO, we would have to be supplying the accommodation in order for it to be FBT, however in this circumstance the employee is renting/owning their own place of residence and we are paying an allowance.
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Hiya @Ash_Payroll 👋
It's a payment subject to withholding, so is not a fringe benefit.
What's the basis of your assessment that the allowance will be fully spent? These types of unconditional allowances are very difficult to assess for super guarantee purposes. You may need to seek assistance from the tailored technical team. 🤔
Deanne
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