(a) By agreement between the employer and majority of employees,all employees will either:
(i) receive a boot allowance of $3.20 per week for the purchase of approved safety boots;
(ii) be issued with up to three pairs of safety boots per annum when provided with satisfactory evidence that any boots issued previously are no longer serviceable;or
(iii) have made available to them the above items which will remain the property of the employer.
(b) A new employee who leaves within a period of four weeks of commencement will be charged the cost of boots and clothing supplied but this charge will be reduced by 25% for each completed week worked.
What to pay
$3.20 per week to buy the boots
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?