1.The first category [reimbursement for expenses] are allowances based on the notion of a reimbursement to the employee for expenses they outlay in performing their work (eg. meals, travel). These allowances are expressed in dollar amounts and are adjusted annually, according to movements in the Consumer Price Index published by the Australian Bureau of Statistics. Payment of expense related allowances are calculated on a per incidence basis.
2.The second category [disability allowances] are those derived as a form of compensation for working in difficult or onerous conditions (eg. furniture, livestock, sanitary, offensive or dirty material etc.) These are called "disability allowances". Award rate disability allowances rates are expressed as a percentage of the standard rate of pay therefore such rates automatically adjust according to the annual movements in the standard rate of pay.
•Payment of disability based allowances can be calculated on a per hour, per day, per week or per incidence basis.
3.The third category [reward for skills or responsibilities] are those designed as a reward for specific skills or responsibilities (eg. leading hand, use of specific qualifications). Reward based allowances are adjusted in the same way as disability allowances - by reference to movements in the standard rate of pay.