Allowances

Benefit allowances are things like meal allowances, uniforms or accommodation you provide for your employees on top of their salary or wages. Allowances are usually taxable except in certain circumstances.

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Accommodation allowances Some employers provide their employees with accommodation or pay an accommodation allowance to an employee. This is generally treated as a benefit allowance. In most situations it will be taxable.
Religious organisation member allowances Members of a religious society or order who do unpaid work may not have to pay tax on board, lodging or other basics.
Meal and clothing allowances Some employers pay allowances for meals, light refreshments, uniforms and protective clothing. In most situations these allowances will be taxable, but there are exemptions.
Relocation expenses allowances Employers sometimes help employees cover the costs of relocating themselves and immediate family for work purposes. These payments may be tax free.
Travel allowances A cash allowance paid to an employee for travel between home and work may be tax free.
Paying tax on non-exempt benefit allowances The difference between the market value of the allowance provided to an employee, and the amount the employee pays, is taxable.
Reimbursing allowances You can reimburse employees for expenses they pay while doing their job, for example meals, vehicles or tools. These expenses are not taxable. However, if the payment is more than the employment-related expenses, the excess amount is taxable.
Payments related to health and safety If you reimburse an employee for a non-cash benefit that qualifies for the fringe benefit tax health and safety exemption (such as a flu shot), the amount you reimburse is exempt income for the employee.

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Roles

Allowances