Dear Owner//Driver


Owner Driver - - Owner / Driver -

With all the cur­rent noise about the travel al­lowance be­ing re­duced. Those who un­der­stand the scam know full well how it can back­fire on the driver.

The boss pays 45 cents per km, 1.75 cents above the award, but that in­cludes the travel al­lowance of $95 per night away. This re­duces the gross tax­able wage be­fore PAYG is ap­plied. So re­ally the driver is be­ing paid less than the award to start with.

Then the Aus­tralian Tax­a­tion Of­fice (ATO) rocks up to the party and asks for “ev­i­dence” of how the $95 was spent. Sorry ATO, yes I claimed $95, but I can only pro­duce $45 in re­ceipts per night. Boom! A tax fine and a po­ten­tial tax bill.

So the out­come is, un­der­pay­ment of wages as per the award (clause 13.3(d) breach), un­der­fund­ing of the driv­ers PAYG, and a po­ten­tial tax penalty from the ATO.

FYI: clause 13.3(d) says “travel al­lowance must be paid in ad­di­tion to the min­i­mum km rate”.

Now who thinks this is still a good idea?

The re­duc­tion to $55 stops the boss from cre­at­ing a po­ten­tial prob­lem with the ATO and $55 is eas­ily ex­pensed with re­ceipts as ev­i­dence. And $55 per night means your real km rate is higher than pre­vi­ous.

You can still claim the $95 per day if you wish, if you have re­ceipts.

We have driv­ers in our group who are fight­ing $7000 per year tax bills. The Driv­ers Ad­vo­cate, Qld (Name with­held by re­quest)

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