Transportation Assistance, Commuting Assistance, and Special Commuting Assistance No Longer Taxable Benefit

Transportation Assistance, Commuting Assistance, and Special Commuting Assistance will no longer be taxable benefits as of April 1, 2023.

Because of their new status, these transportation benefits will no longer be processed through the Revised Pay System for the Reserves and the Central Computerized Pay System.

These transportation benefits will now be administered through a general employee payment request process via the Department of National Defence’s Automated Cashier System, according to a CANFORGEN 058/23 released by the Canadian Armed Forces.

“These transportation benefits were historically processed as taxable benefits. In 2019, Canada Revenue Agency and the Judge Advocate General confirmed their non-taxable status,” stated the CANFORGEN.

Further Details

According to the CAF, this system is an interim process before the Permanent DRMIS solution, which will be implemented shortly. From April 1, 2023, non-taxable transportation benefits must be submitted by the member through their units using form DND 4897.

“CAF Member payment request transportation/commuting assistance to be processed in ACS. DND 4897 will be available in the forms Catalogue by 1 April 2023,” stated the CANFORGEN.

Members must receive the following approval before reimbursement: Financial Administration Act, Account Verification.

Transportation Assistance

An officer or non-commissioned member on Class “A” Reserve Service is entitled to transportation assistance under this paragraph based on distance travelled when:

• the member lives a minimum of 16 kilometres from their worksite; and
• transportation cannot be provided from Government sources, or adequate public transport is not available.

Special Commuting Assistance

According to the CAF, the Special Commuting Assistance (SCA) is provided to eligible members of the CAF to cover some of the costs of transportation if they live farther from work but have opted out of a move.

Commuting Assistance

Conversely, Commuting Assistance is provided to those who are working at either a new worksite that has no adequate public transportation or an older worksite that has no adequate public transportation. There are special eligibility criteria and conditions for this allowance that are outlined in Chapter 209 of the Compensation and Benefits Instructions.