Task Allowances

What are the Task Allowances ?

Task allowances, also known as KN (Task) allowances, are a type of allowance paid to employees to compensate them for specific tasks or activities that involve additional responsibilities, inconvenience, or efforts beyond their base rate of pay. These allowances are meant to acknowledge and provide financial compensation for the extra demands placed on employees due to the nature of their work.

Task allowances can cover various types of additional responsibilities or circumstances that employees may encounter while performing their duties. Examples of task allowances include higher duties allowance (compensating for temporarily assuming higher-level responsibilities), confined spaces allowance (for working in confined or restricted areas), dirty work allowance (for tasks involving unpleasant or hazardous conditions), height money (for working at heights), and first aid allowance (for employees trained and responsible for providing first aid).

Previously, these allowances were included in the taxable gross income of employees. However, there has been a change requiring these allowances to be reported separately, distinguishing them from other types of income.

Note: Services Australia views task allowances as employment income for compensating employees’ extra tasks or responsibilities.

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