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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