Q: I have had a query from staff on the taxes on different allowances.

If an employee has a stay away allowance of $80.00 for example

This is to cover meals and a nightly allowance as this is not his current location

Would this be a taxable allowance to the staff?

We have a number of staff who from time to time need to work a night shift which is not their regular work hours

A night shift allowance is paid to them on those nights which in effect also cover for meals in the evening.

Would this be a taxable allowance to the staff?

A: If you were not paying for this allowance would the employee being paying for these expenses and claiming them back?  If the expenses are in relation to their work, then reimbursing, if the allowance provides a benefit to the employee then it is taxable.

How was the $80 assessed (what is it based on)?

There is an overtime meal allowance that is non-taxable if it relates to the employee doing 2 hours of overtime on the day and the allowance is written into their employment agreement.  Otherwise in general night shift allowances are taxable.