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Allowances & tax

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

  1. Amy

    Amy New Member

    Joined:
    18th Jul, 2011
    Posts:
    3
    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:
    6th Nov, 2007
    Posts:
    343
    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