Configuration of Allowances

For any allowance pay codes that are configured to be reported as separate, itemised amounts on the Individual Non Business payment summary, including for STP reporting, it is necessary to classify those allowances so that the ATO can determine which types of allowances are being reported. An allowance will be itemised on the Individual Non Business payment summary if any of the following fields are ticked on in the allowance pay code configuration on the Rates and Rules > Maintenance > Pay Code > Pay Code Entry > Allowance screen:

• Show on Individual Non Business Payment Summary – available for non-threshold based and threshold based allowance pay codes.

• Show on Individual Non Business Payment Summary (Above Threshold) – available for threshold based allowance pay codes only.

For STP reporting, such allowances must be classified by type so that the ATO knows which type of allowance is being reported. To do this, you must select an option from the Allowance Type field on the Pay Code Entry screen, as highlighted below.

Open

The Allowance Type field is only available if the allowance pay code is configured to display as a separate, itemised allowance on the Individual Non Business payment summary and allows you to select the following options:

• Car

• Transport

• Laundry

• Meals

• Travel

• Other.

For information about which types of allowances must be itemised versus included in gross earnings for Individual Non Business payees, refer to the following topic on the ATO website:

https://www.ato.gov.au/business/payg-withholding/payments-you-need-to-withhold-from/payments-to-employees/allowances-and-reimbursements/withholding-for-allowances/

The above applies to payees who are subject to the Individual Non Business Payment Summary (in FastTrack360 these are payees with a Tax Type of PAYG and a Payee Type of Individual Non Business).