Award Transport Allowance

Sharlyce Reed

Oct 04, 2023

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🎯 The reporting of payments for Award Transport Allowance has changed slightly per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being reported as Transport, Award Transport Allowance is now reported under Allowance Type Code = AD.

🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.

Award Transport Allowance is applicable when the Payee is entitled to an allowance for business use of their private vehicle, where there is evidence of traceability between the current Award/industrial instrument the Payee is employed under to a historical award/industrial instrument that was in force on 29 October 1986.

For example, under the Stevedoring Industry Award 2020 [MA000053], a Grade 7 Stevedoring Payee is entitled to a Vehicle Allowance of $77.98 per week.

Award Transport Allowance uses the $ (or % of Rate Per Hour) set within the Pay Type, and Leave Entitlements are not applicable. Payments with this pay type are included in W1 (Total of Salary, Wages & other payments); however, they are not Taxable or Ordinary Time Earnings (OTE).