Where an employee is required and authorized by their employer to use their motor vehicle in the course of their duties,the employee is entitled to be reimbursed at the rate of $0.92 per kilometre.
$0.92 per km
This allowance is paid for employees using their own car and is based on a cents per kilometre basis.
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
This allowance should not form part of ordinary times earnings
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.
Show the allowance separately in the allowance box