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Tax on car allowance for real estate people on tax return

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Newbie

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Replies 4

I receive a car allowance for my real estate job.

From the Revenue NSW site it says that up to $165. week is the exempt component, which is more than I receive.

I have listed the amount on my tax return as an allowance however how do they know this is a car allowance and should be exempt from tax ?  I don't want them to include it as taxable income as it's not.

Should I have not put it on the tax return ?

Thanks for any help.

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Most helpful response

Devotee

Replies 3

The Revenue NSW reference relates to payroll tax, so it is not relevant to your tax return.

 

This page from the ATO website includes the below information.  

 

"If you receive an allowance from your employer for car expenses, it is assessable income and the allowance must be included on your tax return. The amount of the allowance is usually shown on your income statement or payment summary."

4 REPLIES 4
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Most helpful response

Devotee

Replies 3

The Revenue NSW reference relates to payroll tax, so it is not relevant to your tax return.

 

This page from the ATO website includes the below information.  

 

"If you receive an allowance from your employer for car expenses, it is assessable income and the allowance must be included on your tax return. The amount of the allowance is usually shown on your income statement or payment summary."

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Newbie

Replies 2

Hi Glenn4802

Thanks for your reply.

So just checking that I understand what I read on the page you sent the link for.

I have to put it on my Tax return as an allowance so I pay income tax on it, but I then can claim on my tax return the car expenses by either one of the 2 methods listed ?

Have I understood this correctly ?

Thanks

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Devotee

Replies 1

That is correct.  Providing you have all of the required records, the logbook method is likely to give you a better outcome.

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Newbie

Replies 0

Thank you for your help.