Vehicle allowance

4 November 2015

A brief update on the vehicle allowance in the Architects Award.

The ACA has received a query about the vehicle allowance rate in the Architects Award. Our correspondent enquires about the disparity between the vehicle allowance rate specified within the Architects Award ($0.78/km) and that specified by the Australia Tax Office for this financial year ($0.66/km).

Michael Corrigan, the ACA’s consultant on such matters, notes that these are distinct and separate: He explains that

“The award rates and allowances are set by the Fair Work Commission for awards, while the ATO rates are for award free employees and contractors.  The ATO rates have nothing to do with employees covered by an award.”

Members are reminded that clause 16.1 of the Architects Award states that:

Where an employee is required or it is necessary for an employee to use their private vehicle for work purposes the employee must be reimbursed at a rate not less than $0.78 per kilometre travelled.”