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A company car allowance is a predetermined sum paid to an employee as compensation for driving her own vehicle for business reasons. Companies use car allowances to minimize accounting costs. Once an employee has been allocated a car allowance, that amount is simply added to the employee's paycheck. For example, if the car allowance is $500 per month, this sum is paid to the employee via her paycheck.
Wrong, car allowances are included in super contributions calculations. afaik the car allowance would be paid tax free in your normal weekly wage but come tax time you will need to pay tax on the amount you havent spent on car use. Not really.urning down the car allowance, may mean you only get 60 taxable income instead of 72, but the company could provide a vehicle instead of allowance â but may not be in this case given a small chain etc. The company would then be liable for FBT etc.