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CheyenneK's avatar
CheyenneK
Experienced Cover User
2 years ago

PAYROLL AWARD MA000089 MECHANICAL TOOL ALLOWANCE TAX/SUPER TREATMENT

Hi, I am struggling to get a clear answer on the tax & super(OTE) treatment of tool allowance (award MA000089) in a mechanical shop. Fair Works does not have anything on Tax or Super information. I f...
  • Celia_B's avatar
    Celia_B
    2 years ago

    Hi CheyenneK 

     

    Thank you for bringing this to our attention. In this regard, we can only advise you on how to set up an allowance category, however, we are not experts in explaining how tool allowance works. I would consider contacting ATO to obtain pertinent information. You can check on this Help Article: Allowances, this contains detailed information on how you can set up allowances. You can also use this as your reference. 

     

    If you need further assistance in the future, please don't hesitate to post again. We're happy to assist you. 

     

    Best Regards, 

    Cel

     

Celia_B's avatar
Celia_B
MYOB Staff

Hi CheyenneK 

 

Thank you for bringing this to our attention. In this regard, we can only advise you on how to set up an allowance category, however, we are not experts in explaining how tool allowance works. I would consider contacting ATO to obtain pertinent information. You can check on this Help Article: Allowances, this contains detailed information on how you can set up allowances. You can also use this as your reference. 

 

If you need further assistance in the future, please don't hesitate to post again. We're happy to assist you. 

 

Best Regards, 

Cel

 

CheyenneK's avatar
CheyenneK
Experienced Cover User
2 years ago

Hi Celia and Gavin

 

Thank you for your responses. I do appreciate any help given considering I have spent so much effort on such an small amount of $13 tool allowance which is compulsory under the award. The ATO virtually said it is at the discretion of the employer as to how to treat the tool allowance.  To ask an accountant on this would be a waste of their time to pursue.

I spoke with the Employer and suggested the best way to handle this would be to have it taxed and calculate super on it.

It is best to cover all bases so that the Employer won't be penalised. 

 

Again thank you for your input into my question on this matter, realy do appreciate it.

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