Annexure D – Motor vehicle and accommodation allowance

Extent to which motor vehicle and accommodation allowances are to be excluded from wages

1. A motor vehicle allowance paid to a worker is to be excluded from wages for the purposes of these Guidelines to the extent of an amount calculated at whichever of the following rates is applicable in each case:
   1. in the case of a worker paid an allowance under an award that specifies the allowance solely as a rate for each kilometre or part of a kilometre travelled by the worker in the course of the their employment by means of a motor vehicle provided or maintained by the worker—the rate specified in the award
   2. in the case of any other worker, for each kilometre or part of a kilometre travelled by the worker in the course of business journeys by means of a motor vehicle provided or maintained by the worker— the amount prescribed by Revenue NSW for the financial year and aligned to the equivalent policy year commencing 30 June.

   Note: Where a worker is paid an allowance under an award that specifies the allowance wholly as a lump sum amount or partly as a lump sum amount and partly as a rate for each kilometre, or part of a kilometre travelled by the worker in the course of their employment by means of a motor vehicle provided or maintained by the worker—the amount of allowance to be excluded from wages is to be calculated in accordance with paragraph (b).

2. If the amount calculated in accordance with subclause (1) is greater than the amount actually paid to a worker as a motor vehicle allowance, only the amount actually paid is to be excluded from the calculation of wages.
3. The amount of motor vehicle allowance paid to a worker that is to be excluded from wages for the purposes of this Order is to be calculated using whichever of the following two methods the employer prefers:
   1. the method set out in clause 4 (continuous recording calculation method)
   2. the method set out in clause 5 (averaging calculation method).
4. An accommodation allowance paid to a worker is to be excluded from wages for the purposes of this Order to the extent of an amount calculated at whichever of the following rates is applicable in each case:
   1. in the case of a worker paid an allowance under an award that specifies the allowance as a rate for each night the worker is absent from their usual place of residence—the rate specified in the award
   2. in the case of any other worker, for each night the worker is absent from their usual place of residence in the course of their employment – the amount prescribed by Revenue NSW for the financial year and aligned to the equivalent policy year commencing 30 June.
5. If the amount calculated in accordance with subclause (4) is greater than the amount actually paid to a worker as an accommodation allowance, only the amount actually paid is to be excluded from the calculation of wages.
6. In this clause, award means:
   1. an industrial instrument within the meaning of the Industrial Relations Act 1996, or
   2. any agreement with respect to salaries or wages entered into under the provisions of any other law of the State between an employer constituted by that law and an association or organisation representing a group or class of employees, or
   3. an award, agreement or other instrument under the law of the Commonwealth or of another State or Territory, being an award, agreement or other instrument of a similar nature to an instrument or agreement referred to in paragraph (a) or (b).

Continuous recording calculation method

The continuous recording calculation method requires the following details to be kept and used for calculation:

1. the odometer readings at the beginning and end of each business journey undertaken by the worker during a period of insurance by means of a motor vehicle provided or maintained by the worker
2. the specific purpose for which each such business journey was taken
3. the distance travelled by the worker during the period of insurance in the course of all such business journeys, calculated on the basis of the odometer readings referred to in paragraph (a).

Averaging calculation method

1. The averaging calculation method requires the following details to be kept and used for calculation for the first period of insurance in which a worker’s employer chooses to adopt that method:
   1. the odometer readings at the beginning and end of each business journey undertaken by the worker during the relevant 12-week period by means of a motor vehicle provided or maintained by the worker
   2. the specific purpose for which each such business journey was taken
   3. the distance travelled by the worker during the relevant 12-week period in the course of all such business journeys, calculated on the basis of the odometer readings referred to in paragraph (a)
   4. the odometer readings at the beginning and end of the relevant 12-week period for each vehicle provided or maintained by the worker for the purpose of undertaking business journeys
   5. the distance travelled by each such vehicle during the relevant 12-week period, calculated on the basis of the odometer readings referred to in paragraph (d)
   6. the distance travelled by the worker in the course of business journeys undertaken by means of each such vehicle during the relevant 12-week period, calculated as a percentage of the distance travelled by that vehicle during that period
   7. the distance travelled by the worker in the course of business journeys undertaken by means of each such vehicle during the period of insurance, calculated on the basis that the percentage for each such vehicle for the period of insurance is the same as the percentage for that vehicle for the relevant 12-week period.
2. After the first period of insurance in which odometer details are recorded in accordance with subclause (1), the calculation referred to in subclause (1) (g) isto be employed for the purpose of calculating the distance travelled by the worker in the course of business journeys undertaken by means of each vehicle referred to in subclause (1) during each of the next succeeding four periods of insurance, calculated on the basis that the percentage for each such vehicle for the period of insurance concerned is the same as the percentage for that vehicle for the relevant 12-week period.
3. After the first period of insurance in which odometer details are recorded in accordance with subclause (1), a worker’s employer is not required to record the details referred to in that subclause for the worker for the next succeeding 4 periods of insurance unless:
   1. the Authority serves a notice on the employer before the commencement of a period of insurance during those 4 periods directing the employer to keep the details referred to in subclause (1) for those periods, or
   2. the employer wishes to use the recording method referred to in this clause for one or more additional motor vehicles used by the worker in any period of insurance or for any other reason.

In a situation referred to in subclause (3) (b), a worker’s employer may make a new record of odometer readings for a period of insurance in accordance with subclause (1) to replace the details previously recorded for the worker. The provisions of subclause (3) then apply in relation to the new record.

A worker’s employer who has adopted and employed the method of recording referred to in this clause for a worker for four successive periods of insurance must, in the next succeeding period of insurance, make a fresh recording of the details specified in subclause (1) if the employer intends to continue to use the same method of recording for the worker.

If the odometer of a motor vehicle is replaced or recalibrated during any period for which its readings are relevant for the purposes of this clause, the odometer readings immediately before and after the replacement or recalibration are to be recorded.

For the purposes of making the calculation referred to in subclause (1) (g) for the period of insurance in which this clause commences, a worker’s employer may estimate the distance travelled by a motor vehicle during any part of that period of insurance that occurs before that commencement.

Meaning of “relevant 12-week period”

1. In clause 5, relevant 12-week period means a continuous period of at least 12 weeks, selected by the worker’s employer, throughout which a motor vehicle is provided or maintained by a worker. If the motor vehicle is provided or maintained for less than 12 weeks, the period must be the entire period for which the motor vehicle is provided or maintained.
2. The period may overlap the start or end of the period of insurance, so long as it includes part of the period.
3. If the averaging calculation method is used for two or more motor vehicles for the same period of insurance, the odometer readings for those motor vehicles must cover periods that are concurrent.

Replacing one motor vehicle with another motor vehicle

1. For the purposes of using the averaging calculation method, a worker’s employer may nominate one motor vehicle as having replaced another motor vehicle with effect from a day specified in the nomination.
2. After the nomination takes effect, the replacement motor vehicle is treated as the original motor vehicle, and the original motor vehicle is treated as a different motor vehicle. An employer need not repeat for the replacement vehicle the steps already taken for the original motor vehicle.
3. An employer must record the nomination in writing in the period of insurance in which the nomination takes effect.
4. However, the Authority may allow an employer to record the nomination at a later time.

Previous prescribed rates

Prior to 2022 SIRA prescribed the relevant rates annually and the table below contains the historical prescribed late payment rates prior to the 2022 policy renewal year

Note: The relevant motor vehicle and accommodation rates are published on the Revenue NSW website under Payroll Tax Rates and Thresholds.

Commencing from June 2022 the annual rates are to be determined by insurers by referring to the relevant Revenue NSW figures.

Prior to 2022 SIRA prescribed the relevant rates annually and table below contains the historical prescribed amounts for exclusion from wages prior to the 2022 policy renewal year

*The rates prescribed for the policy renewal years 2019/2020 and 2020/2021 are the same as the rate prescribed for the policy renewal year 2018/2019.