Join our investing community

Health allowance Question

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

  1. rattler

    rattler New Member

    Joined:
    14th Jul, 2017
    Posts:
    4
    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 ?
     
    twisted strategies likes this.