Sally uses her personal motor vehicle for business purposes and receives an allowance of 60 cents per business kilometre.
This car expense allowance isn't subject to payroll tax, as it was paid on a per kilometre basis.
Jackson received a fixed motor vehicle allowance of $12,000. His log book from 1 July 2018 to 30 September 2018 shows he travelled 30,000 kilometres. The business portion was 10,000 kilometres. For 2019-20, Jackson travelled 40,000 kilometres.
The averaging method is used to calculate Jackson’s exempt kilometres.
Therefore $9,066 is considered exempt wages and the remaining $2,934 is liable for payroll tax.
Peta received a fixed motor vehicle allowance of $1,000. No log book was completed.
Without records and log books, the total $1,000 motor vehicle allowance paid is taxable wages for payroll tax.