This could be:

• The employee normally only works at one site each day
  As the trip from home to work is not deemed a work trip, the employer is not required to pay the daily travel allowance. However, if the employer still chooses to pay this allowance to their employees, then the Allowance is reported through STP Phase 2 as Other Allowances - Non-Deductible (ND). Both Tax and Super should be calculated on the amount of this allowance.
• The employee is already given a company vehicle
  If an employee is already given a company vehicle, there is no use for them to receive a daily allowance, as the employee is not paying for any work-related travel costs. If the employer still chooses to pay the daily allowance, the Allowance is reported through STP Phase 2 as Other Allowances - Non-Deductible (ND). Both Tax and Super should be calculated on the amount of this allowance.
• The employee travels from site to site
  If employees are required to travel between one site and another during the workday, and they use their own vehicle or public transportation, then the Allowance must be disaggregated.
  
  Under STP Phase 2, the first component of the Allowance must be reported as an Award Transport Payment, this was an Award in force under Australian law on 29 October 1986. The payable amount of the allowance must be set at $7.60. This amount is exempt from both Tax and Superannuation.
  The second component of the allowance is reported differently depending on how the employee travels from site to site:
  • The employee travels using their own motor vehicle
    The Allowance payable is the difference between the amount stipulated in the Award minus $7.60. Under STP Phase 2, the component of this Allowance is reported as Other Allowance - Private Vehicle (V1). This allowance is taxed, and, as long as the employer pays the amount stipulated by the Award and not more, is also exempt from Superannuation.
  • The employee travels by public transport
    The Allowance payable is the difference between the amount stipulated in the Award minus $7.60. Under STP Phase 2, the component of this Allowance is reported as Other Allowance - Transport/Fares (T1). This allowance is taxed, and, as long as the employer pays the amount stipulated by the Award and not more, is also exempt from Superannuation.

Set up the Non-Deductible Allowance

1. From the Organisation Menu, go to Settings > Payroll Settings
2. Select the [Pay Items] >[Earnings] Tab
3. Click on [Add] > Allowance
   
   

   è  The Allowance Pay Item screen opens
   
   
   
   

4. Select/Enter the following details:
   • Earnings Name > Type: Daily Travel Allowance
   • Type > Select: Other
   • Category > Select: Non-Deductible
   • Display Name> Type: Daily Travel Allowance
   • Rate Type > Select: Rate per Unit
   • Type of Units > Type either Days or Hours (if you want to enter the daily allowance through Timesheets)
   • Amount > Type the daily amount from the relevant Award
   • Expense Account > Select: Wages & Salaries (or Wages - Allowances)
   • Exempt from PAYG > Do Not select this option
   • Exempt from Super > Do Not select this option
   • Reportable as W1 > Select this option
5. Click on [Add]

Set up the Award Transport Pay Allowance

1. From the Organisation Menu, go to Settings > Payroll Settings
2. Select the [Pay Items] >[Earnings] Tab
3. Click on [Add] > Allowance
   
   

   è  The Allowance Pay Item screen opens
   
   
   
   

4. Select/Enter the following details:
   • Earnings Name > Type: Daily Travel Allowance (AD)
   • Type > Select: Transport
   • Display Name> Type: Daily Travel Allowance (AD)
   • Rate Type > Select: Rate per Unit
   • Type of Units > Type either Days or Hours (if you want to enter the daily allowance through Timesheets)
   • Amount > Type $7.60
   • Expense Account > Select: Wages & Salaries (or Wages - Allowances)
   • Exempt from PAYG > Select this option
   • Exempt from Super > Select this option
   • Reportable as W1 > Select this option
5. Click on [Add]

Set up the Private Vehicle Allowance

1. Click on [Add] > Allowance
   
   

   è  The Allowance Pay Item screen opens
   
   
   
   

2. Select/Enter the following details:
   • Earnings Name > Type: Daily Travel Allowance (V1)
   • Type > Select: Other
   • Category > Select: Private Vehicle
   • Display Name> Type: Daily Travel Allowance (V1)
   • Rate Type > Select: Rate per Unit
   • Type of Units > Type either Days or Hours (if you want to enter the daily allowance through Timesheets)
   • Amount > Type the daily amount from the relevant Award less $7.60 (i.e the Award Rate is $20.32 > $20.32 - $7.60 = $12.72)
   • Expense Account > Select: Wages & Salaries (or Wages - Allowances)
   • Exempt from PAYG > Do Not select this option
   • Exempt from Super > Select this option, if you are paying the amount stipulated by the Award, Do Not Select this option if you are paying a higher amount than the one stipulated by the Award
   • Reportable as W1 > Select this option
3. Click on [Add]

Set up the Fares/Transport Allowance

1. Click on [Add] > Allowance
   
   

   è  The Allowance Pay Item screen opens
   
   
   
   

2. Select/Enter the following details:
   • Earnings Name > Type: Daily Travel Allowance (V1)
   • Type > Select: Other
   • Category > Select: Private Vehicle
   • Display Name> Type: Daily Travel Allowance (V1)
   • Rate Type > Select: Rate per Unit
   • Type of Units > Type either Days or Hours (if you want to enter the daily allowance through Timesheets)
   • Amount > Type the daily amount from the relevant Award less $7.60 (i.e the Award Rate is $20.32 > $20.32 - $7.60 = $12.72)
   • Expense Account > Select: Wages & Salaries (or Wages - Allowances)
   • Exempt from PAYG > Do Not select this option
   • Exempt from Super > Select this option, if you are paying the amount stipulated by the Award, Do Not Select this option if you are paying a higher amount than the one stipulated by the Award
   • Reportable as W1 > Select this option
3. Click on [Add]