Reimbursing employees for motor vehicle expenses
Q: For business use of staff’s private motor vehicles, our business pays motor vehicle reimbursement by the Australian Tax Office (ATO) cents/km method. We only have a handful of staff who submit requests for this, as most claim through their personal tax as a deduction. As employers, are we obligated to process reimbursement in this way if employees submit a request for it? Or can we make a determination as company policy that we will no longer process motor vehicle reimbursement, and request that staff process through their own tax returns in future?
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