🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Private Purpose - Cents per Kilometre (S&W) is applicable when the Payee is entitled to an allowance for the private use of their private vehicle which satisfies the vehicle definition test.
For example, under the;
- Electrical, Electronic and Communications Contracting Award 2020 [MA000025]. The Payer must pay the Payee a motor vehicle allowance of 80 cents per kilometre as compensation for expenses where the Payee, by agreement with their Payer, uses their own motor vehicle for the distance of the employee’s journey where the employee is recalled to work overtime after leaving their employer’s business.
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Building and Construction General On-site Award 2020 [MA000020]. The Payer must pay the Payee a motor vehicle allowance of 48 cents per kilometre as compensation for expenses where the Payee is required to travel to a construction site that is not located in a metropolitan radial area in which the employee’s usual place of residence is located and more than 50 kms by road from the employee’s usual place of residence.
Private Purpose - Cents per Kilometre (S&W) uses the $ (or % of Rate Per Hour) set within the Pay Type and Leave Entitlements are not applicable. Payments with this pay type are considered to be Salary & Wages and Taxable, however, they are not Ordinary Time Earnings (OTE).