Div 6Allowances

Division 6—Allowances 29—Motor vehicle allowances (1) For the purposes of 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 the purposes of this Act. (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 that amount that exceeds the exempt component of the motor vehicle allowance is included as wages for the purposes of 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 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 Part 4 of Schedule 1. (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. (7) For the purposes of this section, the exempt rate for the financial year concerned is— (a) the rate determined by legislative instrument under section 28-25 of the ITAA for calculating a deduction for car expenses using the "cents per kilometre method" in the financial year immediately preceding the financial year in which the allowance is paid or payable; or (ab) if there is more than 1 rate under the determination referred to in paragraph (a), the highest of those rates; or (b) if no rate referred to in paragraph (a) is determined, the rate prescribed by the regulations under this Act. 30—Accommodation allowances (1) For the purposes of this Act, wages do not include an accommodation allowance paid or payable to an employee in respect of a night's absence from the person's usual place of residence that does not exceed the exempt rate. (2) If the accommodation allowance paid or payable to an employee in respect of a night's absence from the person's usual place of residence exceeds the exempt rate, wages include that allowance only to the extent that it exceeds the exempt rate. (3) For the purposes of this section, the exempt rate for the financial year concerned is— (a) the total reasonable amount for daily travel allowance expenses using the lowest capital city for the lowest salary band for the financial year determined by the Commissioner of Taxation of the Commonwealth; or (b) if no determination referred to in paragraph (a) is in force, the rate prescribed by the regulations.