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PAYG Income Variation

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Newbie

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Hi team ATO,

 

My employer pays me a $15,000 car allowance which only covers about 50% of the cost of running and maintaining the car.  I have applied for an PAYG income variation with the ATO for which i am claiming 100% as the cost of actually runing the car is circa $30,000.  My base income is $65,000 inc super. My questions are as follows:

 

  • What tax, if any would i be paying on the $15,000 car allowance after applying for a 100% business usage income variation?
  • Does my employer pay super on the car allowance?
  • Can i claim a portion over and above the car allowance based on business usage on the remainig costs of running the car(circa $15,000) at the end of the tax year?
1 ACCEPTED SOLUTION

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Most helpful response

ATO Certified Response

Taxicorn

Replies 0

OK.

 

(1) A Pay as you go variation allows you to reduce/increase the amount of tax that is withheld from your salary, whether it is calculated correctly is up to you to work out. You will have to make up any shortfall if there is one for tax. It will not pay you more car allowance.

 

(2) Super is calculated on Ordinary Time Earnings and not on bonuses, allowance, overtime, shift loading etc.

 

(3) To receive a deduction for your car usage, you need keep a log book, calculate work usage and claim that as per logbook rules

This is of course ensuring that the trips/travel are deductable.

 

Whatever that works out it will be a deduction, which will lower your taxable income, not a dollar for dollar gift from the ATO.

 

The amount of tax that you pay depends on your total taxable income.

 

1 REPLY 1

Most helpful response

ATO Certified Response

Taxicorn

Replies 0

OK.

 

(1) A Pay as you go variation allows you to reduce/increase the amount of tax that is withheld from your salary, whether it is calculated correctly is up to you to work out. You will have to make up any shortfall if there is one for tax. It will not pay you more car allowance.

 

(2) Super is calculated on Ordinary Time Earnings and not on bonuses, allowance, overtime, shift loading etc.

 

(3) To receive a deduction for your car usage, you need keep a log book, calculate work usage and claim that as per logbook rules

This is of course ensuring that the trips/travel are deductable.

 

Whatever that works out it will be a deduction, which will lower your taxable income, not a dollar for dollar gift from the ATO.

 

The amount of tax that you pay depends on your total taxable income.