Award transport payments are the amount of allowances which are paid under an industrial law or award that was in force on 29 October 1986 for transport expenses or car expense reimbursements on a per kilometre basis.
Information for employees to confirm whether the award meets these requirements is normally available from either the employer or the relevant trade union.
Award transport payments are taxable income, but expenses claimed as a tax deduction up to the amount of the allowance do not require supporting written evidence.
If a tax deduction claim is required in excess of the allowance, the claim is subject to the substantiation rules.
Motor vehicle expense claims can be made under either of the two substantiation methods.
PAYG tax withholding deductions on Award transport payments have been specifically exempted by regulation.
This page was last modified 2021-07-01