Allowances & tax

Discussion in 'Business Accounting, Tax & Legal' started by Amy__, 20th Jul, 2011.

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  1. Amy__

    Amy__ New Member

    Joined:
    1st Jul, 2015
    Posts:
    1
    Location:
    Melbourne, VIC
    What's the differnce between a per diem allowance (doesnt get taxed and goes directly into your account) and a project allowance that gets taxed and paid together with your salary.

    I'm confused as to which one is tax deductible and how to claim
     
  2. Superman__

    Superman__ Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    350
    Location:
    Gold Coast, QLD
    OK

    Generally allowances are taxable income - so you enter them into your return as income.

    For many allowances, there will be an equivalent tax deductible expense (hence why the allowances is paid).

    For further more specific advice, check the ATO website or consult an appropriately qualified tax accountant.

    SM
     

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