Travel allowances and the high income threshold

Travel allowances will be included in an employee’s nominal remuneration for determining whether the employee’s income exceeds the high income threshold where it is not to genuinely to reimburse the employee incurring those expenses or in consideration of the provision of a vehicle for work purposes by the employee
“As was the case in Pasznicki, Ms Ni Mhorain’s entitlement to the car allowance was unconditionally paid, had not been linked to the nature of her duties when introduced and UON had no contractual right to unilaterally withdraw it. As was found in Pasznicki, I consider the car allowance was in effect, an alternative way to describe a portion of Ms Ni Mhorain’s cash wages. The car allowance was payable to Ms Ni Mhorain irrespective of her use of her motor vehicle and it was not suggested or asserted that UON had a contractual right to unilaterally withdraw it.”

Ni Mhorain v UON Pty Ltd (2016) FWC 4427 delivered 4 July 2016 per Clancy DP