Payroll Tax Act 2009
29Motor vehicle allowances
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29 Motor vehicle allowances (1) For this Act, wages, in respect of a financial year, do not include the exempt component of a motor vehicle allowance paid or payable in respect of that year. (2) Accordingly, if the total motor vehicle allowance paid or payable to an employee in respect of a financial year does not exceed the exempt component, the motor vehicle allowance is not wages for (3) If the total motor vehicle allowance paid or payable to an employee in respect of a financial year exceeds the exempt component (if any), only the amount that exceeds the exempt component of the motor vehicle allowance is included as wages for this Act. (4) The exempt component of a motor vehicle allowance paid or payable in respect of a financial year is calculated in accordance with the formula: E = K × R E is the exempt component. K is the number of business kilometres travelled during the financial year. R is the exempt rate. (5) The number of business kilometres travelled during the financial year (K) is to be determined in accordance with the continuous recording method, or the averaging method, whichever method is selected and used by the employer in accordance with Schedule 1, Part 5. (6) The Commissioner, by order in writing, may approve the use, by an employer or class of employer, of another method of determining the number of business kilometres travelled during the financial year (including the use of an estimate). If so, the number of business kilometres travelled during the financial year is to be determined in accordance with the method approved by the Commissioner.
Payroll Tax Act 2009 23 (7) For this section, the exempt rate for the financial year concerned is: (a) the rate of cents per kilometre determined under section 28-25(4) of the ITAA for subsection (1) of that section in the financial year immediately preceding the financial year in which the allowance is paid or payable; or (b) if no rate of cents per kilometre mentioned in paragraph (a) is determined, the rate prescribed by regulation under this Act.