Employers may wish to provide staff with some form of assistance with the operating costs of a motor vehicle used for business/employment purposes, but not to the extent of providing the employee with a company car.

 A ready solution would be to simply pay a motor vehicle allowance; an administratively convenient payment simply added to the regular payment and noted separately on the PAYG summary at year end.

The employee receives the immediate cash benefit and at year end may still claim for motor vehicle expenses incurred in their taxation return.

Payment of allowances avoids any fringe benefits tax implications which may arise should a company motor vehicle be provided.