Section 73 of the Income Tax Act 1976
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[ Section 73 Power to exempt employees' allowances 73.1 For the purposes of this section "Additional transport costs" means---
(a) In relation to an employee and to any of the factors referred to in paragraphs (a) to (e) of subsection (3) of this section, the transport costs incurred by the employee in travelling between his home and his place of work, in excess of
the costs which the Commissioner is satisfied that that employee would ordinarily have been expected to incur in that travelling were it not for that factor; and
(b) In relation to an employee and the factor referred to in paragraph (f) of subsection (3) of this section, the transport costs incurred by the employee in travelling between his home and his place of work in excess of an amount equal to $1 for
each day on which the employee attends that place of work to perform his duties: Provided that, except in special circumstances in any case where the approval of the Commissioner is obtained, any distance
in excess of 70 kilometres for any one day shall not be taken into account in calculating any additional transport costs: "Allowance in respect of or in relation to the employment or
service of any person" includes remuneration paid in respect of or in relation to the services of any person as Chairman or as a member of a local authority or statutory Board within the meaning of the Fees and Travelling Allowances Act 1951 or in
respect of or in relation to the services of any person as Chairman or as a member of any committee, board, council, or other body whatsoever to whom remuneration is paid pursuant to any other Act:
"Award", "collective agreement", and "instrument" have the same meanings as in regulation 2 of the Wage Adjustment Regulations 1974:
"Public passenger transport system" means a public passenger transport service which the Commissioner is satisfied--- (a) Operates fixed routes and regular timetables; and (b) Is adequate and has the capacity to serve the place of
work of the employer. 73.2 Subject to this section, the Commissioner may from time to time determine whether and to what extent any allowance in respect of or in relation to the employment or service of any person constitutes a
reimbursement of expenditure incurred by that person in gaining or producing his assessable income, and the allowance shall to the extent so determined be exempt from tax. 73.3
Subject to this section the Commissioner may exempt from tax the whole or any part of any allowance, not being an allowance or part of an allowance which is exempt from tax under subsection (2) of this section,
paid by an employer to an employee in respect of additional transport costs incurred by that employee in travelling between his home and his place of work for the purposes of his employment with that employer, to
the extent that the Commissioner is satisfied, and thereupon determines, that the allowance constitutes a reimbursement of the whole or part of additional transport costs incurred by the employee for the benefit or
convenience of the employer in relation to that employment where those additional transport costs were attributable to any one or more of the following factors: (a) The time or times of day at or during which, or the day or days of
the week on or during which, the employee was required to perform the duties of that employment: (b) The carriage, necessitating the type of transport used, of any
plant, machinery, equipment, technical aid, goods, or material for use or disposal by the employee in the course of that employment: (c) The fulfilling of an obligation under any Act:
(d) A temporary change in the place of work of the employee from the normal place of work, in relation to the same employer:
(e) Any other condition of work of the employee: (f) The absence of a public passenger transport system serving the place of work. 73.4
On written application by any employer or workers' union, or the authorised representative of any employer or group of employees or, where in the opinion of the Commissioner it is necessary to do so, the Commissioner may
(a) For the purposes of subsection (2) of this section determine an amount equal to the average amount of the expenditure incurred during each pay-period by any employee or group of employees, being the amount of expenditure in respect of which a
reimbursing allowance is payable; and (b) For the purposes of subsection (3) of this section, determine an amount equal to the average amount of additional transport costs
incurred during each pay-period by any employee or group of employees, and this section shall then apply as if the amount so determined by the Commissioner under paragraph (a) or, as the case may be, paragraph (b)
of this subsection had been incurred during each pay-period by that employee or by each employee included in that group of employees of that employer. 73.5
Where a determination in relation to any allowance is made by the Commissioner under subsection (2) or subsection (3) or subsection (4) of this section, the Commissioner shall give written notice thereof and
that determination shall apply in relation to every payment of that allowance that is made after the period of one month that immediately succeeds the date of that notice. 73.6
Notwithstanding subsection (5) of this section, in any case where (a) An allowance in respect of or in relation to the employment or service of any person is granted or is to be granted to that
person under any clause or other provision of an award, collective agreement, or other instrument; and (b) A determination made (on or after the 24th day of September 1981)
in relation to that allowance by the Commissioner under subsection (2) or subsection (3) or subsection (4) of this section would, but for this subsection, apply in accordance with the said subsection (5); and
(c) Pursuant to that determination, that allowance is exempt to the extent of less than 100 percent; and
(d) At no time before the making of that determination has a determination in respect of that allowance been given effect to by the Commissioner, the Commissioner may specify in the written notice of that determination
given by him under the said subsection (5) that that determination shall apply with effect from the making of such payment of that allowance as is first made on or after the earlier of
(e) The date on which the said award, collective agreement, or other instrument, having been (after the date on which that notice is so given) first negotiated or, as the case may be, first
renegotiated and, having been registered (as so negotiated or renegotiated) with the Arbitration Court, comes into force with respect to the said clause or other provision:
(f) The later of the following 2 days (i) The day immediately after the period of 6 months commencing with the date on which that notice is so given:
(ii) Such later day, after that period of 6 months, as the Commissioner (having regard to the particular award, collective agreement, or other instrument, to the progress towards its negotiation or renegotiation, and to such other circumstances as
he deems relevant) considers appropriate and notifies in writing. 73.7 Where the Commissioner is satisfied that in relation to an award, collective agreement, or other instrument, arrangements between the
parties thereto have been made with a view to the affairs of the parties being so arranged or conducted that subsection (6) of this section would, but for this subsection, have effect more favourably in relation
to those parties than would otherwise have been the case, the Commissioner may determine that the said subsection (6) shall not apply in relation to any allowance paid pursuant to any clause or other
provision of that award, collective agreement, or instrument or shall apply in relation thereto to only such extent as the Commissioner sees fit. 73.8
Notwithstanding anything in this Act, where any person who is granted or is to be granted an allowance to which a determination made under subsection (2) or subsection (3) of this section applies is
dissatisfied with that determination, that person may object to that determination by delivering or posting to the Commissioner, within one month after the date on which the notice of that determination was given
by the Commissioner, a written notice of objection stating shortly the grounds of his objection. 73.9 Notwithstanding anything in this Act, where any employer or
workers' union, or the authorised representative of any employer or group of employees (referred to hereafter in this section as the applicant), being a party to an award, or a collective agreement, or
another instrument a clause or other provision of which provides for the payment of an allowance in relation to which a determination has been made by the Commissioner under subsection (2) or subsection (3) or
subsection (4) of this section, is dissatisfied with that determination, the applicant may, on behalf of any person who is granted or is to be granted that allowance, object to the determination by delivering or
posting to the Commissioner a written notice of objection stating shortly the grounds of objection within one month after the date on which notice of that determination was given by the Commissioner.
73.10 No notice of objection given after the time specified in subsection (8) or subsection (9) of this section shall be of any force
or effect unless the Commissioner, in his discretion, accepts the same and gives notice to the objector accordingly. 73.11
The Commissioner shall consider every objection made under this section and may alter the determination pursuant thereto. 73.12
If an objection is not wholly allowed by the Commissioner, the objector may, within 2 months after the date on which the notice of disallowance is given to him by the Commissioner, by notice in writing
to the Commissioner, require that the objection be referred to a Taxation Review Authority. 73.13 For the purposes of this section, sections 32, 34, and 35 of this
Act shall, in relation to any objection under this section, apply in the same manner and to the same extent that they would apply if the said objection were an objection made under section 30 (1) of this Act.
73.14 A Taxation Review Authority shall consider every objection referred to him by the Commissioner pursuant to subsection (12) of this
section and shall in each case redetermine, in relation to the determination to which the objection is made, the extent (if any) to which the allowance to which that determination applies constitutes a
reimbursement of expenditure incurred by that person in gaining or producing his assessable income. 73.15 For the purpose of considering an objection referred to him by
the Commissioner pursuant to subsection (12) of this section, a Taxation Review Authority may call for such evidence as he may require and shall, notwithstanding anything in this Act or any other Inland Revenue Act,
have free access to all records under the control of the Commissioner which relate directly to the remuneration paid to the employee or, as the case may be, the group of employees where any allowance granted or
to be granted (to that employee or to the employees in that group) is the allowance to which the objection referred to that Taxation Review Authority by the Commissioner under subsection (12) of this section relates.
73.16 Notwithstanding anything in this Act or any other Inland Revenue Act, every decision or determination of a Taxation Review Authority made
pursuant to subsection (14) of this section shall be final and conclusive.] This section was substituted for the former s. 73 (as substituted
by s. 9 (1) of the Income Tax Amendment Act 1980) by s. 11 (1) of the Income Tax Amendment Act (No. 2) 1982. As to the calculation of earnings for accident compensation, see s. 52 (2) (d) of the Accident Compensation Act 1982.
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52 week history not required
Using the leave calendar
