Vehicle Allowances for Support Workers

When a support worker uses their own car to transport a participant (e.g., to the shops), who pays for the petrol?

SCHADS Award Allowance

If you employ staff under the SCHADS Award, you must pay them a vehicle allowance of approximately $0.99 per km (rate changes annually, check Fair Work). This is tax-free to the employee up to a certain limit.

Billing the Participant

You can bill the participant for "Provider Travel - Non-Labour Costs" (usually $1.00/km) to cover this expense. This must be agreed in the Service Agreement.

Sole Traders

If you are a sole trader support worker, you don't pay yourself an allowance. Instead, you claim the Logbook Method deductions on your tax return (Fuel, Rego, Insurance, Depreciation).