I have a new young employee that I wish to add $50 to his wage each week to cover his fuel costs. He will not be claiming these fuel costs as an expense, so does he need to declare it in his income? If not declaring it in income, my guess is I would set it up as a net (no tax) allowance and not subject to super component either. Does this mess things up with STP, I don't want to get to the end of the financial year and discover I've made a headache for either him or me!