Question:
I am an employee and have for the last year been recieving a car allowance (cents per km method). No tax has been withheld, do I need to pay tax on this when filing my Tax Return. i.e Will it be added on to my Gross Income?
Answers:
I'm giving you an Australian answer.
On your PAYG payment summary this amount will show up under allowances. You need to include it in your income at Allowances, etc at Item 2 (below Salary and Wages). If you don't then the ATO will data match with the info from your employer and amend your assessment and charge you tax on the shortfall. However, you can claim a deduction under Motor Vehicle Expenses using the set rate method or one of the other methods (e.g. logbook method, if you've done a 12 week logbook). The deduction you claim (to the extent that you are entitled) could effectively cancel out the income. See here for claiming car expenses in your return:
http://www.ato.gov.au/individuals/conten...
The amount up to the standard mileage amount is not taxable; any excess is.
This article contents is post by this website user, HiAnswer.com doesn't promise its accuracy.
More Questions & Answers...