ATO Community

How to tell if there is tax on allowance

This post is archived and may not be up-to-date.

Initiate

Views 900

Replies 2

How do you tell if there is tax on home allowance on my pay slip?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @bunify,


If you are referring to the living away from home allowance this allowance is income tax-free, however your employer may be required to pay fringe benefits tax on the value of the allowance or benefits paid.


As @macfanboy has advised enter your gross pay, without the allowance into the calculator to determine if the correct amount of tax has been withheld. There are withholding calculators available on our website to suit different circumstances and are simple and easy to use. 

 
Hope this helps, SueO
 

2 REPLIES 2

Taxicorn

Replies 0

Go to Paycalculator and enter the weekly/fornightly amount WITHOUT the allowance ancd see if you are taxed the same amount.

 

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @bunify,


If you are referring to the living away from home allowance this allowance is income tax-free, however your employer may be required to pay fringe benefits tax on the value of the allowance or benefits paid.


As @macfanboy has advised enter your gross pay, without the allowance into the calculator to determine if the correct amount of tax has been withheld. There are withholding calculators available on our website to suit different circumstances and are simple and easy to use. 

 
Hope this helps, SueO