PAYG Withholding Variation: Labour Hire reimbursements and allowances
Reference: Variation 50
Document type: PAYG Withholding Variation
Enabling act: Taxation Administration Act 1953
Date of issue: 13 September 2016
Signatory: Matthew Bambrick Acting, Deputy Commissioner of Taxation
Registration number: F2016L01580
Registration date: 4 October 2016
This instrument repeals and replaces legislative instrument PAYG Withholding Variation: Labour hire reimbursements and allowances (F2016L00436), registered on 30 March 2016.

Australian Government: • Legislative Instrument No. F2016L00436 registered on 30 March 2016. | I, Matthew Bambrick, Acting Deputy Commissioner of Taxation, make this variation under section 15-15 of Schedule 1 to the Taxation Administration Act 1953.

1. Name of instrument: This instrument is the PAYG Withholding Variation: Labour Hire reimbursements and allowances. | 2. Commencement: This instrument commences on the day after its registration on the Federal Register of Legislative Instruments. | 3. Repealing of existing instrument: This instrument repeals and replaces legislative instrument PAYG Withholding Variation: Labour hire reimbursements and allowances (F2016L00436), registered on 30 March 2016. | 4. Application: This instrument applies to payments that are covered by section 12-60 in Schedule 1 to the Taxation Administration Act 1953 within the class of cases described below. | 5. Class of cases: A payment for reimbursement of actual expenses incurred by the labour hire worker, provided: • the expense that the labour hire worker incurs is related directly to the labour hire worker's work or services performed under the labour hire arrangement • the expenses that the labour hire worker incurred may be able to be claimed as a tax deduction at least equal to the amount of the reimbursement • the labour hire worker is able to substantiate the tax deduction claimed, and • the amount and nature of the reimbursement is shown separately in the accounting records of the payer. An allowance payment being: • Cents per kilometre car expense payments calculated using the approved cents per kilometre rate (to a maximum of 5,000 business kilometres), or • Domestic or overseas travel expenses involving an overnight absence from the labour hire worker's ordinary place of residence. • the expense that the labour hire worker incurs is related directly to the labour hire worker's work or services performed under the labour hire arrangement • the expenses that the labour hire worker incurred may be able to be claimed as a tax deduction at least equal to the amount of the reimbursement • the labour hire worker is able to substantiate the tax deduction claimed, and • the amount and nature of the reimbursement is shown separately in the accounting records of the payer. An allowance payment being: • Cents per kilometre car expense payments calculated using the approved cents per kilometre rate (to a maximum of 5,000 business kilometres), or • Domestic or overseas travel expenses involving an overnight absence from the labour hire worker's ordinary place of residence. • Cents per kilometre car expense payments calculated using the approved cents per kilometre rate (to a maximum of 5,000 business kilometres), or • Domestic or overseas travel expenses involving an overnight absence from the labour hire worker's ordinary place of residence. Provided that: • the labour hire worker is expected to incur expenses that may be able to be claimed as a tax deduction at least equal to the amount of the allowance, • the labour hire worker is able to substantiate the tax deduction claimed, and • the amount and nature of the allowance is shown separately in the accounting records of the payer. • the labour hire worker is expected to incur expenses that may be able to be claimed as a tax deduction at least equal to the amount of the allowance, • the labour hire worker is able to substantiate the tax deduction claimed, and • the amount and nature of the allowance is shown separately in the accounting records of the payer. | 6. Amount to be withheld: The amount to be withheld from payments covered by this instrument has been varied to nil.