Allowance¶

Definition. An allowance is an extra amount paid to an employee to cover a cost or a particular working condition, such as tools, travel or meals, usually set out in the relevant award or agreement.

In plain English¶

An allowance is money added to someone's pay for something extra about their job, like using their own tools or driving for work. Think of it as a top-up on the base rate for a specific reason. The ATO sorts allowances into categories for reporting, and some count towards super while others do not.

Related lessons¶

• Allowances

General information only — not tax, super or financial advice.