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Allowances working out of state

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Newbie

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Hello,

 

I have recently been sent out of state for work, and have been reading up about the tax deductions as my company pay for my hotel and travel, and reimburse me every month. 

 

I live with my parner at his parents house so I don't pay rent and I am not on a lease. A collegue mentioned that If I am not renting in my home state, I could get stung with a fine and have to pay tax on my accommodation allowance from my company. Is this actually the case?

 

Help! The documentation on the ATO website is very confusing. 

 

Thanks in advance.

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Most helpful response

Former Community Support

Replies 0

Hi @Gmillsy

 

Welcome to our community.

 

Essentially if its shown on your payment summary as a travel allowance then your eligible to claim what you have spent as deductions with whatever is appropriate documentation.@macfanboy is correct in that it all depends though how you are reimbursed and if its shown on your payment summary or just the payslip. Note the link above that offers direction for employers under - if the exception applies,you:

 

As to your reference to tax on my accommodation allowance I am assuming this is in reference to when you travel for work hence the above information will apply. However if your employer is paying your rent at home this would form part of your taxable income and should be declared accordingly.

 

I hope this helps.

 

Kind Regards
MarkA

2 REPLIES 2

Taxicorn

Replies 0

It all depends on how they are reimbursed and shown on your Payslip and Payment Summary?

 

 

 

Most helpful response

Former Community Support

Replies 0

Hi @Gmillsy

 

Welcome to our community.

 

Essentially if its shown on your payment summary as a travel allowance then your eligible to claim what you have spent as deductions with whatever is appropriate documentation.@macfanboy is correct in that it all depends though how you are reimbursed and if its shown on your payment summary or just the payslip. Note the link above that offers direction for employers under - if the exception applies,you:

 

As to your reference to tax on my accommodation allowance I am assuming this is in reference to when you travel for work hence the above information will apply. However if your employer is paying your rent at home this would form part of your taxable income and should be declared accordingly.

 

I hope this helps.

 

Kind Regards
MarkA