1 Name#
This instrument is the Taxation Administration (Withholding Variation for Payment of Certain Allowances) Legislative Instrument 2025.
3 Authority#
This instrument is made under section 15-15 in Schedule 1 to the Act.
4 Definitions#
(a) business kilometres;
(b) car expense;
(c) income tax law;
(d) meal allowance expense;
(e) travel allowance expense;
(f) work expense.
In this instrument:
laundry expense means a work expense to do with washing, drying or ironing clothes (but not dry cleaning).
specified allowance means an allowance that is specified at section 7.
6 Withholding amount varied to nil#
(1)The amount that a payer must withhold from a withholding payment to a payee under sections 12-35, 12-40 and 12-45 of Schedule 1 to the Act is varied to nil where:
(a)the payment relates to a specified allowance; and
(b)the payer reasonably expects that the payee will incur deductible work expenses related to the specified allowance that in total are at least equal to the amount of the specified allowance; and
(c)the amount and nature of the payment is shown separately in the accounting records of the payer.
Note: Normal withholding rates apply to the part of a payment related to a specified allowance that exceeds a limit specified in section 7 for that allowance. The normal withholding rates that apply for the financial year relevant to the payment are provided in a legislative instrument made under section 15-25 in Schedule 1 to the Act for that financial year.
7 Specified allowances#
The following allowances are specified for the purposes of section 6:
(a)an allowance for car expenses based on a set rate per kilometre travelled by a car, where:
(i)the allowance is calculated by multiplying the set rate per kilometre by the total number of business kilometres travelled by the car; and
(ii)the set rate used in the calculation does not exceed the rate determined for the income year under subsection 28-25(4) of the ITAA 1997; and
(iii)the total number of business kilometres used in the calculation in respect of which the allowance is paid during the financial year does not exceed the number of business kilometres provided for in subsection 28-25(2) of the ITAA 1997;
(b)an allowance for laundry expenses where the total amount paid during the financial year for such an allowance does not exceed $150;
(c)an allowance for domestic travel allowance expenses which does not exceed the amount that the Commissioner considers reasonable for the income year for the purposes of section 900-50 of the ITAA 1997;
(d)an allowance for overseas travel allowance expenses which does not exceed the amount that the Commissioner considers reasonable for the income year for the purposes of section 900-55 of the ITAA 1997;
Sourced from the Federal Register of Legislation at legislation.gov.au, © Commonwealth of Australia, licensed under CC BY 4.0. Compilations may have been reformatted.