sec.13YExempt component of motor vehicle allowance

### sec.13Y Exempt component of motor vehicle allowance For this Act, a reference to wages, in relation to a return period, does not include a reference to the exempt component of a motor vehicle allowance paid or payable to an employee for the period. If the total motor vehicle allowance paid or payable to an employee for a return period is not more than the exempt component of the allowance, the allowance does not comprise wages for this Act. If the total motor vehicle allowance paid or payable to an employee for a return period is more than the exempt component for the allowance, if any, only the amount of the allowance exceeding the exempt component comprises wages for this Act. The exempt component of a motor vehicle allowance paid or payable to an employee for a business vehicle for a return period is the amount worked out using the following formula— where— E means the exempt component. K means the number of exempt kilometres travelled by the vehicle during the return period, worked out under section 13Z (the number of exempt kilometres ). R means— the rate determined under the Income Tax Assessment Act 1997 (Cwlth) , section 28 -25(4) for calculating a deduction for car expenses using the ‘cents per kilometre’ method for the financial year immediately preceding the financial year in which the allowance is paid or payable; or if there is no rate under paragraph (a) —the rate prescribed by regulation. s 13Y ins 2008 No. 16 s 9 amd 2018 No. 27 s 58 (sec.13Y-ssec.1) For this Act, a reference to wages, in relation to a return period, does not include a reference to the exempt component of a motor vehicle allowance paid or payable to an employee for the period. (sec.13Y-ssec.2) If the total motor vehicle allowance paid or payable to an employee for a return period is not more than the exempt component of the allowance, the allowance does not comprise wages for this Act. (sec.13Y-ssec.3) If the total motor vehicle allowance paid or payable to an employee for a return period is more than the exempt component for the allowance, if any, only the amount of the allowance exceeding the exempt component comprises wages for this Act. (sec.13Y-ssec.4) The exempt component of a motor vehicle allowance paid or payable to an employee for a business vehicle for a return period is the amount worked out using the following formula— where— E means the exempt component. K means the number of exempt kilometres travelled by the vehicle during the return period, worked out under section 13Z (the number of exempt kilometres ). R means— the rate determined under the Income Tax Assessment Act 1997 (Cwlth) , section 28 -25(4) for calculating a deduction for car expenses using the ‘cents per kilometre’ method for the financial year immediately preceding the financial year in which the allowance is paid or payable; or if there is no rate under paragraph (a) —the rate prescribed by regulation. - (a) the rate determined under the Income Tax Assessment Act 1997 (Cwlth) , section 28 -25(4) for calculating a deduction for car expenses using the ‘cents per kilometre’ method for the financial year immediately preceding the financial year in which the allowance is paid or payable; or - (b) if there is no rate under paragraph (a) —the rate prescribed by regulation.