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mileage reimbursement

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Newbie

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My employer reimburses car mileage with a cents per km calculation. Should this be on my PAYG statement as an allowance or as a fringe benifit? They are showing it as an allowance and so I am then paying tax on my reimbursement. Is this correct?

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ATO Certified

Community Support

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Hi @waterwind

 

Welcome to our Community!

 

Yes, if you own or lease the vehicle and can claim car expense deductions, the cents per kilometre payments made to you from your employer are treated as a car allowance and should be shown on your payment summary as an allowance, which you will need to declare as income on your tax return. These kinds of payments are specifically excluded from being treated as fringe benefits.

 

You can find information in Section 22 of the FBTAA which excludes these kinds of ‘reimbursements’ from FBT and so therefore they are assessable to you.

 

Thanks, JodieH. 

 

 

5 REPLIES 5
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Taxicorn

Replies 4

Yes it is correct.

 

You will also be able to claim this as a tax deduction (based on number of work related kms actually driven).

 

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Newbie

Replies 3

Thanks for your response,

it was my understanding that I cannot claim it as a deduction as I've already been reimbursed for my expense...

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Newbie

Replies 2

the situation is: I drive the km, make a claim at work, am reimbursed (calculated with a cents/km rate), it is then shown as an "allowance" on the PAYG, I then pay tax on the reimbursement as allowances are included in my taxable income. So I end up not fully reimbursed... I cannot claim a deduction for an expense I've been reimbursed for... Am I missing something here??? Any help appreciated.

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Taxicorn

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If you have been fully re-imbursed and not paid any tax then no you can not claim a deduction.

 

However, where there is a travel/mileage/km allowance shown on a Payment Summary you can still claim a deduction for the actual number of kms that you travelled.

 

As you said you are not fully re-imbursed and when you make a claim in tax you are not fully re-imbursed (it just lowers your taxable income). 

Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @waterwind

 

Welcome to our Community!

 

Yes, if you own or lease the vehicle and can claim car expense deductions, the cents per kilometre payments made to you from your employer are treated as a car allowance and should be shown on your payment summary as an allowance, which you will need to declare as income on your tax return. These kinds of payments are specifically excluded from being treated as fringe benefits.

 

You can find information in Section 22 of the FBTAA which excludes these kinds of ‘reimbursements’ from FBT and so therefore they are assessable to you.

 

Thanks, JodieH.