Car Allowance Salary Package

Hello i have recently changed jobs and a car allowance of 18 000pa is included in my package.

Car allowance salary package. Bit of a silly question. The allowance gets added to their annual earnings. It s in turn up to an employee to consider whether accepting the cash and freedoms that surrounds owning their car is worth the costs in upkeep and salary sacrifice. Is car allowance part of my salary.

For the last 8 years in my pervious roles i have also had a car allowance as part of my package however it has always come in to my account as an allowance and paid tax free. Car salary packaging vs motor vehicle allowance to accurately calculate the taxation benefit of car salary packaging it is important to consider any tax deduction that you would already be entitled to claim in your tax return. There s no single right way to approach car allowance. A company car not allowance tax generally incurs much higher tax costs than an allowance.

I ve been on a salary package for a construction project that includes a taxable vehicle allowance the past year and was wondering if i am able to make claims for vehicle expenses using the cents per kilometre calculation when carrying tools and ladders that can t be se. It s ultimately a question of whether a company wants to put the responsibility into their employee s hands. Option 4 novated leasing and salary packaging as an individual employee your employer may offer you the option to forego a car allowance in favour of a novated lease also known as salary packaging or salary sacrificing.