• Car expenses - reimbursed cents per kilometre

    Reimbursement of car expenses on a rate per kilometre basis is not a fringe benefit, except in relation to remote area holiday transport (refer to section 19.2 of Reductions in fringe benefit taxable value) and overseas employment holiday transport (refer to section 19.3 of Reductions in fringe benefit taxable value). This is the exception to the general rule that reimbursement for expenses incurred by an employee gives rise to an expense payment fringe benefit.

    The employee will need to show this reimbursement as income in their tax return. They can claim a deduction for any work-related car expenses and TaxPack has more information on the records they will need to do this.

      Last modified: 20 Jan 2014QC 17823