Income tax – what is the tax treatment of allowances paid and benefits provided to farm workers?

This Question We’ve Been Asked (QWBA) considers the income tax treatment of allowances or benefits paid or provided to employees in a farming context. It addresses a range of allowances sometimes paid in a farming context and sets out the Commissioner’s view on the extent to which they can be paid as exempt from tax. The QWBA withdraws and replaces several items previously published in Public Information Bulletins.