Vehicle Allowance - Motor Cars


Educational Services (Post-Secondary Education) Award 2010 [MA000075]

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Applies from: 01/07/2024

Allowance Description

An employee who by agreement with the employer uses their own motor vehicle in the course of their work will be paid the following allowances:

  • $0.98 per kilometre with a maximum payment of up to 400 kilometres per week, or 

  • $0.33 per kilometre with a maximum payment of up to 400 kilometres per week.

The employer must pay all expenses including, registration, running and maintenance where an employer provides a motor vehicle which is used by an employee in the performance of their duties.



What to pay

$0.98 per km with a maximum payment up to 400 km per week

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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