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Sam P.
Sam P.
Penrith, NSW
4 Likes
0 Followers

My boss has asked if want to have a car allowance incorporated into my salary. As I understand it means less take home pay but are their real benefits for me. Is it better to get paid my full salary and just claim the car business vehicle expenses. Who benefits most, me or my employer?

9 months ago

Responses

Hi Sam,

You need to speak to your accountant and get some further details from payroll/boss.

Are they looking to add to your exsisting wage, or incorporate different components into one wage figure? Or the reverse?

From a tax deduction perspective, there is no difference. Assuming you are doing a lot of driving for your work, make sure you have a log book completed within the last 5 years and keep note of odo reading every 30 June.

Your take-home pay might change a bit - a motor vehicle allowance does not need to be fully taxed, if the employer expects you to claim a deduction to or exceeding the allowance level. Note - this reduces the tax refund at year end, as you receive the tax benefits in your pay.

Super and work cover should still apply, generally, to this allowance, especially if part of your salary package.

Comments

Hi Todd, that's great feedback.. thanks for the help

Sam

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