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Overtime Meal Allowance

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Newbie

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2 questions regarding Overtime Meal allowance if I can have some assistance with please.

 

Is Overtime Meal Allowance paid to an employee paid under an Award, classed as a payment benefit under FBT provisions and treated as 'otherwise deductible (not subject to FBT)?

 

For WA Payroll Tax returns, are the above amounts included as an Allowance, Fringe Benefit, or is it exempt from Payroll Tax?

 

Thank you

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ATO Certified Response

Devotee

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Hi @J380469,

 

Thanks for your patience while we checked in with our technical experts. They've confirmed that fringe benefits tax (FBT) does not apply to overtime meal allowances.

 

An overtime meal allowance is a separate payment made to an employee to compensate them for working overtime. If the overtime meal allowance is paid under an award, and is up to the reasonable allowance amount, tax doesn't need to be withheld and the payment doesn't need to be included on the payment summary - see Table 5 on our Withholding for allowances page to learn more.

Payroll tax is administered by your state's government - if you're in WA, you'll need to contact the West Australian Office of State Revenue for more information.

 

Thanks.

1 REPLY 1
Highlighted

Most helpful response

ATO Certified Response

Devotee

Replies 0

Hi @J380469,

 

Thanks for your patience while we checked in with our technical experts. They've confirmed that fringe benefits tax (FBT) does not apply to overtime meal allowances.

 

An overtime meal allowance is a separate payment made to an employee to compensate them for working overtime. If the overtime meal allowance is paid under an award, and is up to the reasonable allowance amount, tax doesn't need to be withheld and the payment doesn't need to be included on the payment summary - see Table 5 on our Withholding for allowances page to learn more.

Payroll tax is administered by your state's government - if you're in WA, you'll need to contact the West Australian Office of State Revenue for more information.

 

Thanks.