Hello
The per km rate as per the award our employees are on is 0.99c.
I need help to work out what is the tax exempt component of the 0.99c for the first 5000 km. I understand that any km over 5000 are fully taxed.
Revenue.nsw.gov.au has a table and details that "The exempt rate per km used for NSW payroll tax purposes is the ATO prescribed rate for the FY immediately before the FY in which the allowance is paid. For example, if a MVA is paid in the FY 2025-26, the exempt component is calculated using the ATO km rate for the FY 2024-25." https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/payroll-tax/taxable-wages/allowances/motor-vehicle#heading3
Using the information provided in the table on the web page above, then an allowance paid in the 2025-2026 financial year would be have an exempt component of 0.85c exempt which is the period 1/7/2024 - 30/06/2025.
However when I look at this ATO page
It says "Use the rate for the income year for which you are claiming a deduction 2025-2026 use 88 cents per kilometre"
I just need confirmation on if it is 0.85 that is tax exempt for the first 5000 cents per km allowance or if it is 0.88 for payments made in the 2025 - 2026 financial year.
Thank you
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