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Benefit allowances are things like meal allowances, uniforms or accommodation you provide for your employees on top of their salary or wages.

Claiming GST on benefit allowances

You can claim GST on allowances paid to employees if:

  • they create the cost during business activity
  • you’re registered for GST
  • you hold a correct GST tax invoice or keep details of the expense if it is under $50.

You cannot claim GST if the allowance:

  • does not reimburse the employee's actual expenses paid on your behalf, or
  • is paid to meet the employee's private expenses.