Health allowance Question

Discussion in 'Accounting & Tax' started by CRT, 8th Nov, 2018.

Join Australia's most dynamic and respected property investment community
  1. CRT

    CRT Member

    Joined:
    14th Jul, 2017
    Posts:
    18
    Location:
    Melbourne
    I work for a startup (with home as a primary office on my offer letter with a lot of interstate travel).

    Outside of my base and bonus salary, I also receive a Health allowance and Travel allowance, as my employer currently do no t have enough employees in Australia to set up a corportate health insurance. Now I understand that this allowance will be taxed as a normal pay. With travel, I can claim back what I spent on travel but on health allowance it seems like a double dip from tax office:

    a) I have to pay tax on the health allowance I receive (almost 40%+ of allowance is taken by Tax dept)
    b) Then I have to top up that amount to buy private health to avoid levy's


    The only solution I have in my mind is to take an initiative myself and get some corporate health plan quotes from market - and then take it to management to convince them to buy a health policy for us.

    Any other ideas ?
     
    2 people like this.

PFI can assist you with your investment strategies for your SMSF, Life Cover for your members and assistance with compliance. We provide the research to ensure your investment selections achieve the goals. This is the value of advice