Travel KMs- tax return

Question

Hi there,&nbsp;I believe I have set up the travel allowance for cents per kms correctly through MYOB Accountright STP 2.The staff here sometimes use their personal vehicle for travel and they are reimbursed per KM travel.However, on the income assessment, although it is in the ''total allowances' catergory, it is classed as taxable income. This is incorrect as all staff claimed way less than 5,000 km for the year and they were not taxed at the time of pay processing. Help please!

tracey_h · Answer

Hi&nbsp;V_STG&nbsp;
&nbsp;
I'm sorry to see that no one has replied to you yet, I hope you were able to resolve this. If you need assistance with this or anything else please let me know and I'll be happy to help.

freman · Answer

https://www.ato.gov.au/business/payg-withholding/payments-you-need-to-withhold-from/payments-to-employees/allowances-and-reimbursements/withholding-for-allowances/

Employee would claim, as a deduction, their motor vehicle @ D1 on their ITR.

Whilst the reimbursment might have been calculated at or below the ATO rates the employee is under no obligation to use the cents per km method when they make their claim.

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Travel KMs- tax return

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