How should I calculate my super for car allowance I receive from my employer?

 Author: PayrollDeanne(Taxicorn)Taxicorn

15 Oct 2025

Hiya @JustinK 👋

Your employer hasn't done this in a way to make it easy to assess that. Let me have a go:

• Car Insurance - they hold the insurance and pay your expenses then they deduct the expense from the allowance they give you? Or know what the annual amount is, so reduce what they would have paid you to cover the expense they'll pay on your behalf? That sounds like a fringe benefit that isn't OTE? Therefore, it also isn't subject to PAYG withholding?
• Flat rate car allowance - it depends on how they determined the rate they pay you. If they did it by identifying the likely expenses you will incur then it would likely be a fully spent expense allowance and not OTE. If they just came up with an amount without reference to the other expenses you will incur (registration fees, fuel, maintenance, depreciation etc), then it is OTE and SG is payable. This whole amount is a payment subject to withholding.

Super guarantee is not payable on everything you are paid. You should see your flat rate car allowance component on your Income Statement as Allowance Type-O (other) > V1 Private Vehicle? You can then claim work-related deductions on your tax return.

Deanne

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 Author: JustinK(Initiate)Initiate

15 Oct 2025

Hi Deanne

Thank you for your explanation. I'm glad you mentioned PAYG as well, since I was initially going to ask.

1, For car insurance, they knew what the annual amount is, they just reduce what I owe them for car insurance.

My understanding for this part is not a part of OTE so it's not superable and not subject to PAYG. Is it correct?

2, For car allowance amount, they just come up with a number without reference to the other expenses that will incur.

For this part, after the deduction of car insurance, the rest is superable and subject to PAYG. However, is the super for this part has to be on top of this amount? Or it can come from this amount, like my employer did.

Thank you

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