Summary

In 2009, the Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill introduced changes to reimbursement and honorarium payments made to volunteers.

Reimbursement payments that are based on actual expenses incurred by the volunteer in undertaking voluntary activities are now tax-exempt, provided the payment is made separately from honoraria.

Honorarium payments continue to be taxed at the following rates:

• Normal rate = 0.33
• Rate if no tax code declared = 0.48

Reimbursements

Allowances for reimbursement payments to volunteers should use the following setup:

• Type = "A. Allowance"
• Paying = "Yes"
• Taxable = "No"
• All fields on Details (iii) tab = "No"