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  • Meat workers – income and work-related deductions

    If you earn your income as a meat worker, this guide will help you work out what:

    • income and allowances to report
    • you can and can't claim as a work-related deduction
    • records you need to keep.

    Find out about meat workers':

    Income – salary and allowances

    Include all the income you receive during the income year in your tax return, this includes:

    Don't include reimbursements.

    Your income statement or payment summary will show all your salary, wages and allowances for the income year.

    Salary and wages

    You must include your salary and wages as income in your tax return. Include any bonuses.

    Allowances

    Include all allowances shown on your income statement or payment summary as income in your tax return.

    While all allowances you receive from your employer are income, you can't always claim a deduction if you receive an allowance – it depends on the situation.

    If you can claim a deduction, the amount of the deduction is not usually the same amount as the allowance you receive.

    Allowance types, reasons and deductibility

    Reason for allowance

    Example of allowance type

    Deduction (Yes or No)

    Compensation for an aspect of your work that is unpleasant, special or dangerous

    Leading hand allowance

    No

    These allowances don't help you pay for deductible work-related expenses

    Compensation for industry peculiarities

    Cold temperature allowance

    No

    These allowances don't help you pay for deductible work-related expenses

    An amount for certain expenses

    Clothing allowance

    Yes

    If you incur deductible expenses

    An amount for special skills

    A first aid certificate

    Yes

    If you incur deductible expenses

    Example: allowance assessable, no deduction

    Nadia works at a meat processing plant. During her shift, Nadia spends time working in temperatures varying from minus 4⁰C to minus 10⁰C.

    Nadia's employer pays her a cold temperature allowance of 62 cents per hour for each hour she spends working in those conditions.

    At the end of the income year, Nadia's employer shows the total amount of the allowance on her income statement. Nadia must include the total allowance shown on her income statement as income in her tax return.

    Nadia can't claim a deduction because she doesn't incur any deductible expenses. The allowance compensates her for her working conditions.

    End of example

     

    Example: allowance assessable, deduction allowable

    Allan works at a meat processing plant. Allan's employer pays him an overtime meal allowance of $15.24 each time he works more than an hour and a half longer than his rostered finishing time. Allan does overtime 15 times during the year.

    When he works overtime, Allan gets a meal break. On his meal break, Allan buys food and drink from the vending machine in the break room. He generally buys peanuts or chips, a bottle of soft drink and a chocolate bar which costs him around $12.

    At the end of the income year, Allan's employer shows the total overtime meal allowance of $228.60 ($15.24 x 15) on his income statement.

    Allan must declare the overtime meal allowance of $228.60 as income in his tax return.

    Allan can claim a deduction for the food and drink he buys on his overtime break. Allan calculates his deduction as $180 ($12 x 15).

    End of example

    Difference between allowances and reimbursements

    An allowance does not include a reimbursement.

    If your employer pays you:

    • an amount based on an estimate of what you might spend, such as paying cents per kilometre if you use your car for work, then it's an allowance
    • for the actual amount of the expense (either before or after you incur the expense), such as paying for the petrol you use if you use your car for work, it's a reimbursement.

    Allowances not on your income statement or payment summary

    Your employer may not include some allowances on your income statement or payment summary. This can apply to travel allowances and overtime meal allowances paid under an industrial law, award or agreement. You can see these allowances on your payslips.

    If the allowance isn't on your income statement or payment summary, and you:

    • spent the whole amount on deductible expenses, you  
      • don't include it as income in your tax return
      • can't claim any deductions for these expenses
       
    • spent more than your allowance, you  
      • include the allowance as income in your tax return
      • can claim a deduction for your expense, if you're eligible.
       

    Reimbursements

    If your employer pays you the exact amount for expenses you incur (either before or after you incur them), the payment is a reimbursement. We don't consider a reimbursement to be an allowance.

    If your employer reimburses you for expenses you incur:

    • don't include the reimbursement as income in your tax return
    • you can't claim a deduction for the expenses.

    Find out about meat workers':

      Last modified: 24 May 2022QC 58285