Award Transport Payments(AD)

What are “Award Transport Payments”?

Award Transport Payments (AD) are deductible expense allowances provided to employees for business-related transportation costs. They are defined in section 900-220 of the Income Tax Assessment Act 1997 and based on rates specified in industrial instruments like awards.

To be eligible for AD, the payment must trace back to an award in force on October 29, 1986. If not traceable, it is treated as “no measures defined by the ATO” and reported as “Other Allowances” (“Private Vehicle”).

Private use of award transport payments is non-deductible for PAYGW and super guarantee. AD is taxable income, and expenses claimed within the allowance don’t need written evidence, but exceeding claims require documentation.

Motor vehicle expense claims follow substantiation methods. Employees should consult employers or unions for award eligibility.

Note: PAYG tax withholding deductions on award transport payments are exempted, not applicable.

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