Tony is employed by Wafer Ltd as a Sales Manager. In carrying out his employment duties, Tony uses his own car to visit clients.

Tony is employed by Wafer Ltd as a Sales Manager. In carrying out his employment duties, Tony uses his own car to visit clients.

Tony's remuneration package includes a cash salary of $110,000 per annum as well as a car allowance to cover the estimated cost that Tony incurs in using his own car to visit clients. This car allowance is $500 per month.

Is Tony required to include the car allowance in his assessable income? Explain why it is or is not assessable.