Tax Question

[Dutchy]

Im sure some on here might know this answer.

I use my own car for work sometimes, rural travel. I then claim 0.75 cents a Km back thru my employer who pay me tax free thru my salary.

Is this amount taxable?

My understanding was the first $3,500 was tax free but Im struggling to fiund any evidence of this.

Any help would be appreciated!

[toot toot]

Short answer yes.

The first 5,000km are tax deductable. So therefore anything you are reimbursed over and above the 5,000km (or $3,750) is taxable.

http://www.ato.gov.au/individuals/conte ... 2&st=&cy=1

[gadj1976]

Im sure some on here might know this answer.

I use my own car for work sometimes, rural travel. I then claim 0.75 cents a Km back thru my employer who pay me tax free thru my salary.

Is this amount taxable?

My understanding was the first $3,500 was tax free but Im struggling to fiund any evidence of this.

Any help would be appreciated!

Dutchy, I used to work in payroll but my knowledge is dated, however I am aware that if your payroll area pays it as a non taxed item - it's because they are required to. What I don't know is if its capped, how it's treated thereafter. I wouldn't suspect you would have to claim it, it should all be displayed as a taxable or non taxable item on your payment summary at years' end.

The actual details have changed, however you'll find some info here http://www.payrollnews.com.au/Announcem ... x?ID=46079

Cheers

Gadj

[redandblack]

Short answer yes.

The first 5,000km are tax deductable. So therefore anything you are reimbursed over and above the 5,000km (or $3,750) is taxable.

http://www.ato.gov.au/individuals/conte ... 2&st=&cy=1

toot toot is right up to a point.

The amount is taxable, but you can claim it back up to a maximum of 5,000kms, so that it effectively cancels out.

If you have been reimbursed for more than 5,000kms, it is still all taxable, but you have a choice between restricting your claim to 5,000kms, or choosing one of three other methods.

Briefly they are:

1 claim 12% of the cost of the vehicle.

2 Claim 1/3rd of your total vehicle costs, including depreciation, etc, or

3 Keep a log book and claim the work percentage of your total use on all vehicle expenses, but keep receipts for substantiation.


If it's more than 5000 kms, juast work out which method gives you the best deduction.

[gadj1976]

Short answer yes.

The first 5,000km are tax deductable. So therefore anything you are reimbursed over and above the 5,000km (or $3,750) is taxable.

http://www.ato.gov.au/individuals/conte ... 2&st=&cy=1

toot toot is right up to a point.

The amount is taxable, but you can claim it back up to a maximum of 5,000kms, so that it effectively cancels out.

If you have been reimbursed for more than 5,000kms, it is still all taxable, but you have a choice between restricting your claim to 5,000kms, or choosing one of three other methods.

Briefly they are:

1 claim 12% of the cost of the vehicle.

2 Claim 1/3rd of your total vehicle costs, including depreciation, etc, or

3 Keep a log book and claim the work percentage of your total use on all vehicle expenses, but keep receipts for substantiation.

If it's more than 5000 kms, juast work out which method gives you the best deduction.

Dutchy's stated that he's being paid through his pay, tax free. That's a correct method of performing it via PAYG.

I think you guys are talking about claiming it all back at end of fin year (is that correct?).

[redandblack]

Yes, I think that's what he's asking and it's the end result that matters.

[the big bang]

while we're on the subject of tax........

I'm a subbie (tradie), my phone is under my boss' (i pretty much only work for the one guy) name.

he makes me pay my phone bill. but how much of it is he getting back on tax? so i pay my bill of $100 a month, is he claiming the full $100 a month and making that much profit off it?

the phone bill is addressed to his buisness name, if that changes anything?

[redandblack]

If he's claiming it, he'd be making about $30 or $40 approximately.

[the big bang]

rightio then.

i'm guna tell him he can pay $30 each month then.

[redandblack]

That will be $50 thanks, banger

[Dutchy]

Thanks gents, think i understand.

To clarify, Ive got the $$$ tax free - it specifies it on my group certificate seperately and says "nontax" yet ive received a notice from the ATO as I didnt put the figure as my income.

[Dutchy]

Thanks for the advice on here and via PM.

Ive spoken with the ATO and apparently if it is an allowance then its taxable, but if it is a reimbursement it isnt.

I need to get a letter from my employer stating that the full amount was a reimbursement of the use of my private car for work purposes and how they calculated it. From there I should be OK.

[Booney]

That will be $50 thanks, banger

$50 for 5 minutes work!

Bloody hell, rates must be going down.

[Bully]

i use my car for work everyday. driving to a job from home is not taxable (if its under the normal travel to the office) in my case thats 30kms. So anything over 30 kms driving to work for my first job is taxable. During the day driving to and from jobs is taxable. Driving home from a job if its longer then my normal travel from work is taxable.I get a car allowance every week on top of my pay.

I get taxed on my car allowance every pay week so as i get a lump sum at the tax return time. But i have a choice not to be taxed and get more in my pay a week.ANything over 100kms in a day you get what ever cents per kilometre (by law) in your pay. In my case its .30cents for every kilometre over 100kms a day. If its shorter then 500kms in a total week its not claimed. So if you drive 200kms in one day and then nothing the next 3 days and the total for one pay week is under 500kms then you cant claim. every company is different but this is my case if it helps

[the big bang]

That will be $50 thanks, banger

it's in the post.