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.
DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice. Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information. We recommend that our formal advice be sought before acting in any of the areas. The article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our consent,
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 lifting weights in her local CrossFit gym. Book in to see Jeanette today.