ATO category V1

Question

Hi, as at 1 October 2026, the ATO is deleting payroll category AD (MYOB's Award Transport Payment?) and replacing with V1.  What's the MYOB replacement category for V1?  After wading though a momentous amount of unnecessary dialogue on the ATO's site, it seems to me the only difference is whether or not it's taxed, and if so, is the category NOT changing in MYOB, but we users simply control it via the Exempt option?

AshleyR · Answer

Many thanks for replying so quickly, Genreve.

Genreve_S · Answer

Hi @AshleyR,

I can see why that change would be confusing. There isn’t one specific MYOB replacement category for every payment affected by the AD change. AD should only be used for eligible award transport payments made on or before 30 September 2026.

For payments made from 1 October 2026, the correct category depends on what the payment covers: V1 for deductible travel in a private vehicle, T1 for deductible public transport, taxi or rideshare costs, or ND where the payment is for private or non-deductible travel. So V1 isn’t a blanket replacement for every payment previously reported as AD, and Exempt shouldn’t be used as a general replacement for the ATO category.

Confirm the allowance’s purpose before choosing the category. The ATO’s Allowances guidance has the full decision tree. If you’re unsure which category applies to your specific award payment, it’s best to check with your accountant or payroll adviser.

Regards,
Genreve