|Ruling number||PTA 024|
|Date issued||30 June 2008|
|Issued by||Tony Newbury|
Chief Commissioner of State Revenue
|Effective from||1 July 2007|
Section 30 of the Act imposes payroll tax on accommodation allowances paid or payable to an employee in respect of a night’s absence from the employee's usual place of residence to the extent that those allowances exceed the exempt rate. Generally, accommodation allowances are paid to an employee to cover temporary accommodation costs necessarily incurred while the employee is required to travel for work purposes. (See Revenue Ruling PTA 005 Exempt allowances: Motor vehicle and accommodation).
Under the Transport Workers (Long Distance Drivers) Award 2000 (the Award), where a long distance truck driver is unable to return home at night, the employer is required to pay the driver an allowance to cover the necessary personal expenses reasonably incurred in travelling. Further, the Award states that where the employer provides suitable accommodation acceptable to the union, the truck driver will not be entitled to the allowance. Under general circumstances, truck drivers do not incur accommodation expenses when travelling for work as they sleep in their trucks.
This Revenue Ruling clarifies the payroll tax treatment of overnight allowances paid to truck drivers.
Overnight allowances paid to long distance truck drivers are exempt from payroll tax if the following criteria are satisfied:
If an overnight allowance exceeds the exempt rate, the difference between the allowance and the exempt rate is subject to payroll tax (Revenue Ruling PTA 005).
This Revenue Ruling is effective from 1 July 2007.
Please note that rulings do not have the force of law. Each decision made by the Office of State Revenue is made on the merits of each individual case having regard to any relevant ruling.