Employees defined as Managerial Staff (Hotels) who are required by their employer to use their own vehicle in or in connection with the official business of the employer must be paid an allowance of $0.78 for each kilometre of authorised travel. An employer may require an employee to record full details of all such official travel requirements in a log book as a pre-condition for the employee qualifying for the allowance.
What to pay
$0.78 per km
This allowance is paid for employees using their own car and is based on a cents per kilometre basis.
Should you withhold tax?
Kilometre allowances should not have tax withheld from them unless they are over the ATO threshold. This is currently $0.72 per kilometre. If they are over, the amount up to these thresholds is tax free and the remaining amount is taxable
Should super be paid on this allowance?
This allowance should not form part of ordinary times earnings
Should payroll tax be paid on this allowance?
The exempt portion (up to $0.72 per km) is not included for payroll tax purposes and is exempt. The amount above this is included for payroll tax purposes.
How is it treated on the payment summary?
Show the allowance separately in the allowance box
How should it be reported for Single Touch Payroll?