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Motor Vehicle Allowance

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Newbie

Views 445

Replies 2

Hi All

 

I am hoping you can help me. I use my own car for work and I am reimbursed 78c p/km however on our pay slips this is calulated with my normal pay as we are taxed on the total. 

 

This is putting me in the higher tax bracket and I am being taxed alot. 

 

In previous jobs I was not taxed on my petrol allowance it was just a straight reimbusement - this is the first work place that has ever done this. 

 

So my question is

1. are they suspose to be taxing my 78c p/km

or 

2. do I get my straight reimburment? 

Thanks 

1 ACCEPTED SOLUTION

Accepted Solutions
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Best answer

Enthusiast

Replies 0

Your employer is correct in withholding tax from this as it is above the ATOs approved rate of 68c per km.

Reference:
www.ato.gov.au/business/payg-withholding/payments-you-need-to-withhold-from/payments-to-employees/al...

2 REPLIES 2
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Devotee

Replies 0

Hi EllieT,

 

A reimbursement is only that if it directly reimburses you for actual expenses. Being paid c/km doesn't fit that definition, and is therefore a taxable allowance - so your employer is treating it correctly.

 

If you are travelling for work purposes, you should be able to make travel claims on your tax return to reduce your income.

Highlighted

Best answer

Enthusiast

Replies 0

Your employer is correct in withholding tax from this as it is above the ATOs approved rate of 68c per km.

Reference:
www.ato.gov.au/business/payg-withholding/payments-you-need-to-withhold-from/payments-to-employees/al...