Modern Australian Magazine
Men's Weekly

.

Social Media: Is It Increasing Rates of Anxiety and Depression?

In today’s connected world, social media has become an integral part of daily life. Platforms like Instagram, TikTok, and Facebook offer opportuni...

Preventive Maintenance Tips for Hydraulic Equipment

Hydraulic equipment plays a crucial role in industries ranging from construction and mining to agriculture and manufacturing. Whether it’s powerin...

Choosing the Right LiDAR System for Your Project

When planning a project that relies on accurate spatial data, selecting the right LiDAR system is one of the most critical decisions you’ll make. ...

The History of Craft Beer: From Monasteries to Modern Breweries

Craft beer has a rich and fascinating history that stretches back centuries. What we enjoy today in trendy taprooms and bustling breweries is the re...

How Natural Pearls Shaped Trade Routes and Global Economies

Throughout history, natural pearls—those rare, untamed treasures formed by nature itself—have exerted a powerful influence on trade networks, po...

How To Choose The Right Insulation For Your Space

Selecting the appropriate insulation for your home or building is a critical decision that affects comfort, energy efficiency, and present and future ...

7 Best Things to Do in Beaufort, Victoria

Beaufort is a charming small town in Victoria’s Goldfields, full of history, natural beauty, and warm, welcoming locals. Whether you’re passing th...

What to Expect During Divorce Mediation & Settlement

Divorce can be a difficult and emotionally draining process, but mediation and settlement often provide a constructive path forward. Instead of goin...

Navigating Disability Services in Perth: Your Questions Answered

Understanding the landscape of disability support can feel overwhelming, especially when you're just starting out. If you’re looking for support a...

How Veneers and Dental Implants Work Together for Full Smile Restoration

Modern dentistry has strong instruments that can produce life-changing outcomes when it comes to repairing a smile that has been impacted by tooth los...

Gen Z’s Are Going off Grid – But Is It Sustainable?

Australia’s cost of living crisis is causing Gen Z to get creative with frugal living options. Earlier this year, young couple Koby and Amelie wan...

The Risks of DIY Air Conditioning Installation and How to Avoid Them

Air conditioning is essential in Australia, especially during the scorching summer months, when homes and workplaces can become unbearable without rel...

Understanding Employee Car Allowance Rates in Australia

  • Written by News Co


In Australia, company cars are generally seen as standard practice. However, instead of just offering an entire car to an employee, more and more companies are moving towards a car allowance system that frees up the choice of vehicle for the employees and removes the stress of having to maintain the car. For an employee, this can be a great benefit that goes beyond the usual limitations of a company car.

But how does it work, and what is the right way for an employee to handle it?


What is the allowance for?

Australian companies that offer an allowance use it as an alternative to company cars. This allowance doesn’t just cover the cost of having the car, but things like fuel, tyre replacements, insurance, registration, maintenance, and major repairs. The allowance is given to the employee like normal payday pay, although some companies may treat it as a separate account.

This money is then used to purchase, improve, maintain, and generally own the car, taking it out of the employer’s direct control. This means that the employee has the ability to choose whatever car they think is best and modify or repair it as needed, although they will have to use their own money for things beyond the scope of the allowance. This money can also be used to repair and upgrade an older car if the employee already owns one, rather than being exclusive to a new car.

It is up to the employee to decide how this money is used: they can decide if they want to spend it all straight away, save some for emergencies, or even keep all of the money in reserve and work with their own car.


How much does the allowance cover?

Standard employee car allowance rates can usually vary somewhere between $18,000 and $20,000 every year, although this varies even further depending on your role in the company, your salary, and how important the car actually is to your job. Somebody in a higher-paid role with a job that involves heavy use of their car may be able to get a larger car allowance as one of their employee benefits.

Remember that the allowance is per year, but it also doesn’t stop you from using your own money as well. If you already own your car, then you might prefer to save the allowance for emergencies and get non-essential upgrades or tweaks through your normal bank account.


How does it work with a new car?

There aren’t many limitations on how the allowance can be used as long as you aren’t directly misusing it. For example, as long as you are getting upgrades or improvements to your car that can directly or indirectly benefit you and your work, everything should be fine. Some companies might frown on using part of the allowance to get bigger speakers or features that are purely for recreational use, but they probably won’t stop it.

One of the main uses of this allowance is to help you afford a new car, either through a full purchase or a finance system. This means that you aren’t stuck having to pay for it with your normal bank account, and it can allow you to afford vehicles that you would otherwise have no chance of earning.


How does it work with an existing car?

Since the car allowance can be considered one of your employee benefits, you have almost full control over how the money is used. This means that your personal vehicle can also be upgraded, repaired, maintained, and generally improved through this allowance too: as long as you are using it on a vehicle that you use for work, there are very few downsides to having the allowance. 


Novated Lease

A novated lease is a salary arrangement that serves as the ‘ideal’ employee salary car allowance system for most employees. This is based on your actual salary and enables you to save on taxes that you would otherwise pay, but also covers operational and ownership costs of the vehicle. You also have the option of owning the vehicle once the lease ends, meaning that you aren’t stuck without a car if you end up changing positions or moving to a new company in the future.

Holidays & Travel

7 Best Things to Do in Beaufort, Victoria

Beaufort is a charming small town in Victoria’s Goldfields, full of history, natural beauty, and warm, welcoming locals. Whether you’re passing through or planning a weekend escape, Beaufort offers experiences...

Perth Airport Transfers: Choosing the Right Service

Touching down in a new city can be exciting, but let's be honest, it can also be a bit stressful. After a long flight, the last thing you want to...

How to Save Smart: Cheapest Travel Insurance for Schengen Visa without Cutting Corners

Picture this: you’ve found a last-minute flight to Milan, your hotel booking comes with breakfast and a rooftop view, and your itinerary is ready for a whirlwind of museums, mountains...

Why Personalised Ornaments Make the Perfect Christmas Gift

In a season brimming with sentiment and tradition, gift-giving is one of the most cherished ways to show we care. And while store-bought items can be thoughtful, there’s something especially...

Slowing Down in Nature: My Experience on Orchid Classic Cruise in Lan Ha Bay

Why Orchid Classic is a Top Choice for Lan Ha Bay Lan Ha Bay, a hidden gem adjacent to the more famous Ha Long Bay, offers travelers a quieter and more...

How to Reduce Turbo Lag with an Upgraded Mazda BT-50 Exhaust System

Are you struggling with turbo lag affecting your driving experience?  Did you know upgrading your Mazda BT-50 exhaust system could be the key to unlocking smoother acceleration and enhanced vehicle performance? Exhaust...

Surprise Party Ideas That Will Leave Your Guests Speechless

Throwing a surprise party is one of the most exciting ways to celebrate a special occasion. The thrill of keeping it a secret combined with the joy of watching the...

The Most Scenic Sailing Destinations in Australia and New Zealand

Australia and New Zealand are home to some of the world’s most breathtaking sailing destinations. With vast coastlines, pristine waters, and diverse landscapes, these countries offer incredible opportunities for sailors...

A Guide to Finding Caravans for Sale for Your Australian Road Trip

From the rugged Outback to stunning coastal drives, there's no better way to explore Australia than in a home on wheels. If you're considering joining the caravan community, you're likely...

Fashion & Beauty

Best Nail Care Routine for Frequent Nail Polish Wearers

For many people, nail polish is more than a beauty statement – it’s part of their everyday routine. Whether you love bold colours, chic neutrals, or glossy finishes, regularly wearing...

The Confidence Curve: Why Boudoir Photography Is the Empowerment Trend You Didn’t Know You Needed

Boudoir photography has been quietly taking over social feeds, Pinterest boards, and personal milestones—and for good reason. It’s not just about lingerie and lighting. It’s about self-love, storytelling, and confidence...

The Best Nail Art for Short Nails

Short nails often get overlooked in the world of nail art, but they’re actually the perfect canvas for stylish, sophisticated designs. Whether you prefer bold patterns, minimalist details or soft...

Davines Sustainable Haircare: Revolutionizing Eco-Friendly Beauty Solutions

Davines is a well-known brand in the world of haircare, known for its high-quality products that deliver exceptional results. Its commitment to sustainability and unique haircare philosophy sets Davines apart...

High Visibility Work Shirts: A Must-Have for Workplace Safety

Workplace safety is a necessity. Workers from construction sites to manufacturing units should be visible for their well-being and they have it by wearing high visibility work shirts. Yes, when...

Polo Shirts: Wardrobe Essential for All

Polo shirts have started the journey as sportswear. But now, these are regarded as the best workwear. Also, people love to wear them for personal gatherings and more. These are...