Damage to clothing,spectacles,hearing aids and tools
(i) Compensation must be made by an employer to an employee to the extent of the damage sustained where,in the course of work,clothing,spectacles,hearing aids or tools of trade are damaged or destroyed by fire or molten metal or through the use of corrosive substances. The employer’s liability in respect of tools is limited to the tools of trade which are ordinarily required for the performance of the employee’s duties. Compensation is not payable if an employee is entitled to workers compensation in respect of the damage.
(ii) Where an employee as a result of performing any duty required by the employer,and as a result of negligence of the employer,suffers any damage to or soiling of clothing or other personal equipment,including spectacles and hearing aids,the employer is liable for the replacement,repair or cleaning of such clothing or personal equipment including spectacles and hearing aids.
What to pay
compensation to the extent of the damage sustained
This allowance is paid for employees providing their own tools. The assumption is that the employee would spend the allowance on replacing their tools from time to time
Should you withhold tax?
Do not withhold tax from this allowance
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?
Include this allowance 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?