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Re: Car parking Allowance

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My work provides me with a daily carpark on our premises. 

On my 2-weekly payslip they pay me an amount as Car Parking of $95.00 before tax. 

It is then taxed and they deduct the remainder being $64.00 after tax. 

On my Group Certificate/Income Statement they show annual Car Allowance $2465.00.  They do not show the amount of $1664 deducted back. 

I do not use my car for work travel. 

Is this correct?

 

 

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ATO Certified

TaxTime Support

Replies 3

Hi @RobertD

 

Welcome to our Community.

 

When your employer finalises your payment summary or income statement, they are required to complete all of the fields that are relevant to your payments for that financial year.

 

While there are a number of potential payment types (gross payments, lumps sums, allowances, etc.) that they may need to complete, there is only one total tax withheld field. In turn, any tax that was withheld from your car allowance should be part of the total tax withheld amount.

 

For example, an employee is paid $2500 of salary and wages each fortnight and has $540 tax withheld from it. They also receive a fortnightly car allowance of $90 with $30 tax withheld. In turn, their total fortnightly tax withheld is $570. Their payment summary/income statement appears as follows:

  • Total tax withheld: $14,820
  • Gross payments: $$65,000
  • Car allowance: $2,340

You can check out the PAYG payment summary – individual non-business page on our website for more information.

 

Hope this helps.

 

Thanks,

 

ChrisR

4 REPLIES 4

Best answer

ATO Certified

TaxTime Support

Replies 3

Hi @RobertD

 

Welcome to our Community.

 

When your employer finalises your payment summary or income statement, they are required to complete all of the fields that are relevant to your payments for that financial year.

 

While there are a number of potential payment types (gross payments, lumps sums, allowances, etc.) that they may need to complete, there is only one total tax withheld field. In turn, any tax that was withheld from your car allowance should be part of the total tax withheld amount.

 

For example, an employee is paid $2500 of salary and wages each fortnight and has $540 tax withheld from it. They also receive a fortnightly car allowance of $90 with $30 tax withheld. In turn, their total fortnightly tax withheld is $570. Their payment summary/income statement appears as follows:

  • Total tax withheld: $14,820
  • Gross payments: $$65,000
  • Car allowance: $2,340

You can check out the PAYG payment summary – individual non-business page on our website for more information.

 

Hope this helps.

 

Thanks,

 

ChrisR

Newbie

Replies 2

Thanks Chris, 

 

Still confused..... my query is that work deducts back the allowance remainder of $64.00.  So I do not receive any money in hand from the allowance I am being taxed for. 

On my Group Certificate/Income Statement they show annual Car Allowance $2465.00.  They do not show the amount of $1664 deducted back. 

Would appreciate your comments.

Thanks 

RobertD

 

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ATO Certified

TaxTime Support

Replies 1

Hi @RobertD

 

Thanks for your reply.

 

It sounds like you have an arrangement with your employer for them to provide you with a car park. It would seem that the car park isn't free and that they are both charging you for the car park and paying you an additional amount to compensate you for it.

 

From what you have said, after the tax and car park costs have been withheld from the additional payment, the net result of that arrangement is $0 (plus a car park).

 

It would be advisable that you talk to your employer to confirm that this is the case. If so, what they have done may very well be correct. In saying that, it might not be hence why a conversation with your employer is recommended.

 

The reason why it may be incorrect is because depending on the situation, it could be considered a car parking fringe benefit. You can check out the car parking fringe benefits page on our website for more information.

 

A car parking fringe benefit will generally arise if an employer provides car parking to an employee and all of the listed conditions are satisfied. There are exemptions.

 

Hope this helps.

 

Thanks,

 

ChrisR

Newbie

Replies 0

Thanks Chris, appreciated,

Robert 

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