Premier & Cabinet

Type:
Department of Premier and Cabinet Circular
Identifier:
C1998-78
Status:
Archived

C1998-78 Taxation of Allowances

Detailed Outline

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

Circular 98-45 advised that the Australian Taxation Office (ATO) had granted a further extension of time until 30 September 1998 to comply with Taxation Rulings requiring PAYE deductions on overtime meal and travelling allowances where NSW public sector rates exceed ATO reasonable amounts. However, the extension did not apply to the preparation of Group Certificates for the 1998-99 income year or the substantiation requirements on individual employees. Circular 98-45 also advised that the Premier's Department was pursuing an appeal against the ATO's refusal to grant the NSW public sector an exemption from the relevant Taxation Rulings.

A formal appeal against the ATO's decision has now been lodged. If successful, the appeal will lead to the ATO accepting that NSW rates of allowances for overtime meals and travelling involving an overnight stay are reasonable within the terms of the Taxation Rulings.

Having regard to the appeal process and the uncertainty for Departments, agencies and individual employees, the ATO has also been requested to grant a further extension of time for PAYE deductions and substantiation requirements for the 1998-99 income year for employers and employees respectively.

The Public Employment Office has lodged an Interim Award application with the New South Wales Industrial Relations Commission to enable the reasonable allowances set by the ATO to be paid pending the appeal. The application continues to be negotiated with the Public Service Association as consent is necessary.

Any enquiries may be directed to Doug Cowell on telephone number 9228 3575.

Ian Peters
Acting Assistant Director-General, PSMO

Overview

Compliance

Not Mandatory

AR Details

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

Contacts

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