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Cents per KM Allowance Deduction

Newbie

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Replies 1

Hi,

 

At various times in my role I have had to use my personal vehicle for work travel, and for this I have received a travel allowance from my employer. In my payslips this has shown up as AFTER TAX EARNINGS - KA Kilometre No Tax PS at a rate of 68c/km for the 2019-2020 Financial Year. Note: My total travel amounted to less than 5000km for the 19-20 financial year.

 

I had always assumed that this was not taxed, however on my tax return this is showing up as a taxable allowance.

 

My question is then, am I able to claim these as a deduction on my tax return at 68c/km, given that I incurred personal expenses to receive this travel allowance taxable income?

 

Many thanks

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Accepted Solutions

Most helpful response

Devotee

Replies 0

In my experience with payroll, allowances are put as after tax earnings. This does not mean they are not taxable income, it just means that they are not included for calculating PAYG. 

 

Yes you can claim your business related car expenses as per https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Vehicle-and-trave...

1 REPLY 1

Most helpful response

Devotee

Replies 0

In my experience with payroll, allowances are put as after tax earnings. This does not mean they are not taxable income, it just means that they are not included for calculating PAYG. 

 

Yes you can claim your business related car expenses as per https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Vehicle-and-trave...