1. Home
  2. »
  3. Allowances

Tax Advantaged Allowances

The following allowances receive specific tax treatment, which may 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
  • Read more..

See also:

TR 2021/D1 – released 17 Feb 2021
Income tax and fringe benefits tax: employees: accommodation and food and drink expenses, travel allowances, and living-away-from-home allowances.

PCG 2021/D1 – released 17 Feb 2021
Determining if allowances or benefits provided to an employee relate to travelling on work or living at a location – ATO compliance approach

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. Read more..

Award Transport Payments
Payments made under an industrial law or award that was in force on 29 October 1986. Read more..

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. Read more..

PAYG Withholding Variation: Tax Free 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. Read more..

Car Allowance

Living Away From Home Allowance Fringe Benefit

Related topic: Travel between home and work

This page was last modified 2021-05-11