Allowance Description
An employee employed in one locality to work in another, or sent other than at their own request from their usual locality to another locality for employment which can reasonably be regarded as permanent, involving a change of residence must be paid travelling time and reasonable expenses whilst necessarily travelling between such localities.
The rate of pay for travelling time will be ordinary rates, except on Sundays and public holidays when it will be paid at a rate of 150% of the ordinary hourly rate.
The maximum travelling time to be paid for will be 12 hours out of every 24 or when a sleeping berth is provided by the employer for all-night travel, 8 hours out of every 24.
Payments should not exceed 3 months or 6 months, where the employee is in the process of buying a place of residence in the new locality.
Payments will cease after the employee has taken up permanent residence at the new locality.
What to pay
payment at the minimum hourly rate per hour for a maximum of 12 hours in every 24 hours, until permanent residence is taken up at the new location, for up to 6 months
Notes
This is a type of expense allowance where we would not expect the employee to claim a deduction for this in their tax return
Should you withhold tax?
Withhold tax from this allowance
Should super be paid on this allowance?
This allowance forms 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?
Include this allowance as part of gross wages
How should it be reported for Single Touch Payroll?
Gross PAYEVNTEMP47
