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 ?