The Allowance "Name" is the name you give it when you setup the Payroll Item. This is the name that will show up in your payroll & on the employee's Payslip.
The tax-tracking section window shown above is specifically linked/configured to the ATO's STP-required data fields & contains the classifications - as per the ATO - for EOFY reporting purposes (STP &/or Payment Summaries).
Shaz Hughes Dip(Fin) ACQ NSW, MICB
Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314