From 1 July 2015, under the cents per kilometre method, individual taxpayers can only claim a deduction of $0.66 per kilometre of work-related travel (up to 5,000km) in their individual tax returns.
Where employers reimburse their employees for their work-related travel, any reimbursement over $0.66 will be subject to tax in the employee’s tax return. Consequently, employers should withhold tax on any allowance paid to employees in excess of the $0.66 per kilometre.
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Jeanette has over 20 years experience as an accountant in public practice. She is a Chartered Accountant, registered tax agent and accredited SMSF Association advisor. When she is not helping business owners grow their empires, you will likely find her out running on the trails or at the gym. Book in to see Jeanette today.