Motor Vehicle Allowances
<h2 >What is the correct withholding treatment for allowances?</h2>
<p >The correct withholding treatments and payment summary requirements for various allowance types are listed in the tables below.
<a href="https://www.ato.gov.au/Business/PAYG-withholding/In-detail/Allowances,-leave-payments-and-repayments/Withholding-from-allowances/?page=1#Table_1" class="bookmark" >Table 1</a> lists the various types of allowances that an employee might receive and describes how these allowances are treated.
<a href="https://www.ato.gov.au/Business/PAYG-withholding/In-detail/Allowances,-leave-payments-and-repayments/Withholding-from-allowances/?page=1#Table_2" class="bookmark" >Table 2</a> lists those allowances which are subject to a varied rate of withholding.
You must follow the withholding and reporting requirements as outlined in the tables below to allow your employees to correctly complete their income tax return.</p>