1 July Car Allowance Tax Exemption 2020/21 July 1, 2020 By Reef Admin Allowances 0 REEF's application to the Australian Taxation Office for an exemption from the requirement to deduct tax from an employee's award-based car allowance has once again been granted for the 2020/21 financial year. Each year, REEF applies to the Australian Taxation Office (ATO) for an exemption so that our members can provide their employees with the relevant award-based car allowance without deducting tax. Without the variation authorised by the ATO, the car allowance is effectively assessable income to the employee and subject to tax at the time it is paid. The ATO has advised that our request has once again been granted for the 2020/21 financial year. A copy of the exemption can be obtained from REEF upon request. The variation of the tax deduction on car allowances only applies to financial members of REEF. Real estate employers who are not REEF members are not able to rely upon this tax exemption. The amounts paid to the employee for car allowances must still be shown on their annual pay summary under the allowances section, yet no tax is to be withheld. Employees may still request to have tax deducted from their motor vehicle allowance and employers should accommodate such requests. Related Car Allowance Tax Exemption for REEF Members 2021-2022 REEF's application to the Australian Tax Office for an exemption from the requirement for members to deduct tax from award-based car allowances paid to employees has again been granted for the 2021-2022 financial year. Payroll tax and independent contractors In recent years, far too many real estate employers have paid a heavy price for failing to understand the difference between bona fide independent contracting arrangements and those ultimately found to be an employment relationship. Real Estate Industry Award: Out with the old, in with the new After a long battle, the Fair Work Commission has now finalised the four-year award review and the new Real Estate Industry Award will commence on 2 April 2018. Here's what you need to know before the changes kick in. Direct and indirect costs of employing a salesperson Do you know the impact engaging a full-time salesperson will have on your bottom line? When do they add value to your agency? The results may surprise you. When does a salesperson start to add value to my agency? Success in any business requires a sound appreciation of the cost pressures that have an impact on the bottom line. In agency practice, one of the major pressures relates to the employment of staff. 2019 wage review provides 3% increase to minimum wage rates In its 10th annual Minimum Wage Review, the Fair Work Commission has announced that the minimum rates under modern awards will be increased by 3%. Comments are closed.