Living away from home
A living away from home allowance is commonly misinterpreted as an accommodation allowance. This allowance is liable for Fringe Benefits Tax.
It is usually paid to people who have had to move to the location of the business or to a site from which the business operates, they are subject to reasonable benefit limits under the FBT legislation. Any amounts paid above those limits are returnable as a fringe benefit and are liable for payroll tax.
Travel allowance
A travel allowance is paid in some industries to encourage workers to travel to separate work sites. The allowance is not restricted to the use of the employees own motor vehicle and is not based on the kilometres travelled on a business trip by that vehicle. As such it is liable for payroll tax.
Last updated: 09-May-2008
