Tax Advantaged Allowances
The following allowances receive specific tax treatment, which may be favorable, or at least reduce the tax that would otherwise be payable on income which is spent on deductions associated with earning taxable income.
- ATO Reasonable Travel Allowances
Reasonable allowance expense amounts for each year are set out in an annually updated Tax Determination covering:
- overtime meals
- domestic travel
- employee truck drivers
- overseas travel
- office holders covered by the Remuneration Tribunal
- Federal Members of Parliament
The tax exempt components of a Living Away From Home Allowance are made up of reasonable food and accommodation costs less the statutory allowance amounts based on the members of your family
- Award Transport Payments
Payments made under an industrial law or award that was in force on 29 October 1986
- Overtime Meal Allowances
With some exceptions, an overtime meals allowance should be declared as income, and subject to conditions, may be claimable as a tax deduction.
- PAYG Withholding Variation: Allowances
A regulation made under the Taxation Administration Act 1953 provides that there is no requirement to deduct tax from certain allowances associated with the tax deductible expenses of an employee.
This page was last modified 2018-07-02