When an employee is required to travel from their normal place of employment or their normal place of residence to a distant job (as defined) the employee will be reimbursed for all travelling expenses incurred. The mode of travel will be as directed by the employer provided the comfort of the employee will be of a standard not less than that of economy class travel. All time spent in travelling from the normal place of employment or the employee’s normal place of residence to the distant job will be paid at the ordinary time rate of pay up to a maximum of eight hours in any one day. For sprinkler fitter trades,payment will be made at the rate of time and a half where the employer requires the employee to travel on Sundays and public holidays.
What to pay
payment at the minimum hourly rate (including any relevant all purpose allowances) + 50%, up to a maximum of 8 hours per day
This is a type of expense allowance where we would expect the employee to claim a deduction for this in their tax return
Should you withhold tax?
Do not withhold from this allowancd
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?