What does car allowance mean in my salary package?

Question

Hi,

I have been offered a job by a reputed organisation in Melbourne. My salary includes about 15k as car allowance. Now, the problem is : I do not own a car, nor have plans to buy one and am also not comfortable driving.

The employer said this amount can not be moved into my base salary. Does this mean that I won't be able to get any money from my car allowance as my fortnightly pay since I do not have a car? Or does it mean that I will get this money even without any car, albeit it shall be taxed?

Please help..I need to accept or reject the offer soon

Answer 1

If you are offered a car allowance you will probably be expected to do local or short trip traveling for the company. Car allowance usually refers to money paid for fuel and maintenance of a vehicle used for company business. Sometimes it is based on the mileage driven and sometimes it is a flat rate. Ask the HR rep of the company if you must own a car or if you can use the car allowance for public transportation.

Answer 2

Car Allowance Salary Package