To avoid the high cost of FBT, many employers choose to provide a car allowance to their employees, typically ranging from $15,000 to $20,000. Although this allowance is subject to tax, you can claim a deduction for the work-related portion of running costs. Instead of waiting for a sizable refund at year-end after filing your tax return, you can reduce the amount of tax withheld from your regular pay by applying for a PAYG Withholding Variation and obtain the tax benefit upfront.
Note: This information is for general guidance only and may not suit your individual circumstances. Please consult a qualified professional before taking action.
