The sort of package-enhancing allowances which can work for lower income earners are:
* Non-contributory medical aid schemes;
* Non-contributory provident funds;
* Travelling allowances for employees who are likely to cover more than 14 000 kilometres a year or keep accurate records;
* Residential accommodation for employees who do not or cannot own their own homes such as mine workers or away-from-home contract workers;
* Entertainment allowances for employees who need to entertain clients. The maximum allowable is R2 500 of entertainment spending a year and receipts must be kept.
Inappropriate allowances which could be followed by lump sum payback demands from the Receiver can be:
* Car or travelling allowances made to office-bound workers, who are then motivated to buy log books or falsify mileage to minimise tax;
* Residential accommodation allowances paid directly to employees (rather than to their landlords) which are aimed only at reducing the employee's tax;
* Entertainment allowances to those who cannot justify having to entertain clients.