Vehicle Allowance


Award Definition

Surveying Award 2010 [MA000066]

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Allowance Description
In cases where it is mutually agreed that an employee will be required to use their private vehicle during the course of employer’s business,an employee must be paid reasonable compensation,but in no case will they receive payment at a rate less than the equivalent of $0.78 per kilometre so travelled.

What to pay

$0.78 per km

Notes

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?

Car

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