PAYG Withholding Variation: Labour Hire reimbursements and allowances
Reference: Variation 44
Document type: PAYG Withholding Variation
Enabling act: Taxation Administration Act 1953
Date of issue: 29 March 2016
Signatory: Steve Vesperman Deputy Commissioner of Taxation
Registration number: F2016L00436
Registration date: 30 March 2016
This legislative Instrument repeals the following legislative instrument: • Legislative Instrument No. F2006B00301 registered on 10 February 2006. | This legislative instrument repeals and replaces legislative instrument PAYG Withholding Variation: Labour hire reimbursements and allowances (F2006B00301), registered on 10 February 2006.

I, Steve Vesperman, Deputy Commissioner of Taxation, make this determination 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 Commencement: This instrument commences on 1 April 2016 and will be withdrawn on 31 October 2016. | 3. Repealing of existing instrument: This legislative instrument repeals and replaces legislative instrument PAYG Withholding Variation: Labour hire reimbursements and allowances (F2006B00301), registered on 10 February 2006. | 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. 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. • 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. A payment for allowances of expected expenses incurred by the labour hire worker, provided: • 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. Allowances: • Cents per kilometre car expense payments up to amounts calculated using the approved cents per kilometre rate (to a maximum of 5000 business kilometres). • 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 up to amounts calculated using the approved cents per kilometre rate (to a maximum of 5000 business kilometres). • Domestic or overseas travel expenses involving an overnight absence from the labour hire worker's ordinary place of residence. | 5. Amount to be withheld: The amount to be withheld from payments covered by this instrument has been varied to nil.