Premier & Cabinet

Type:
Department of Premier and Cabinet Circular
Identifier:
C1998-45
Status:
Archived

C1998-45 Taxation of Allowances

Detailed Outline

The purpose of this Circular is to advise you of further developments on the issue of taxation of overtime meal and travelling allowances.

Circular No 98-43 advised that the Premier's Department had sought a further extension of time to comply with Taxation Rulings requiring PAYE deductions on overtime meal and travelling allowances where NSW public sector allowances exceed the Australian Taxation Office's (ATO) reasonable limits.

The ATO has advised that it is prepared to grant a further extension of time to comply for those agencies which have been unable to put the correct procedures in place as at 30 June 1998. Those agencies are granted a further period of time to 30 September 1998 in which to implement the changes in relation to the deduction of tax instalments. The extension does not apply to the preparation of Group Certificates for the 1998-99 income year.

The practical affect of the Taxation Rulings is that employees who wish to claim a deduction for travel or award overtime meal allowances in taxation returns, without keeping written evidence, will have to limit their claim to the reasonable amounts. If an employee claims a deduction above the reasonable amount, they will need to have written evidence to support the whole of their claim, not just the excess.

As advised in Circular No 98-43, the Premier's Department is pursuing an appeal against the ATO's refusal to grant the NSW public sector an exemption from the relevant Taxation Rulings. The Taxation Ruling for the 1998-99 income year is TR 98/10 and is available from local Australian Taxation Offices.

I will continue to keep you informed of developments. Any enquiries may be directed to your Client Contact Officer or Doug Cowell on telephone number 9229 3575.

C. Gellatly
Director-General

Overview

Compliance

Not Mandatory

AR Details

Date Issued
Jun 13, 2014
Review Date
Jun 13, 2024
Replaces
Replaced By

Contacts

Contact
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Phone
02 9228 5555
Publishing Entity
Department of Premier and Cabinet
Issuing Entity
Department of Premier and Cabinet