What Is Conveyance Allowance?

What we call a transportation reimbursement in the United States, other countries refer to as a conveyance allowance. Terminology aside, the basic concept is the same—the cost of transportation is reduced or eliminated by paying the traveler's or operator's transport fees in full or in part. Understanding what a conveyance is and how an allowance might be used in conjunction with a conveyance helps define the term as it is used outside of the United States.

Definition of Conveyance

A conveyance is a means of transportation or the transferring of persons and things from one point to another. Air, water or ground transportation vehicles can be referred to as a conveyance. Taxis, ferrys, commuter planes, shuttle vans, school buses and the family car all qualify as a conveyance.

Definition of Conveyance Allowance

A conveyance allowance refers to an amount of money reimbursed to someone for the operation of a vehicle or the riding of a vehicle. The allowance is typically a designated amount or percentage of total transportation expenses that is referenced in a country's tax laws or code. Organizations and private or public businesses may also offer a conveyance allowance in addition to reimbursing employees or members for transportation expenses. In this instance, the conveyance allowance may identify an unusual transport occurrence that may not be covered by a designated travel expense report such as travel to a specific job site that requires a daily bus or taxi ride.

Conveyance Allowance Eligibility Requirements

Governments that use a conveyance allowance restrict the use of the allowance by defining eligibility requirements. The requirements specify a particular group of people who qualify for reimbursement and may include restrictions such as age, physical or mental ability or geographic location. To begin receiving the allowance, information provided on an application must match the stated qualifications.

For example, in New Zealand the conveyance allowance is used by caregivers who transport eligible students to and from school. Australia also provides a conveyance allowance to parents and caregivers where students attending government schools do not have access to school bus services. Governments in India, on the other hand, use conveyance allowances in a number of ways including giving the allowance to certain government workers who are not reimbursed through normal traveling allowances and, as in other countries, to alleviate costs for qualifying students who are required to travel to attend school.

Conveyance Allowance Application

Applications requesting a conveyance allowance may ask a series of questions about the parent, guardian or organization providing the conveyance, the student and the details of the trip. Trip details may require a list of stops, names of students being transported, mileage between stops and start and stop times. A student's physical impairment or intellectual disability may also require proof from a doctor.

In instances in which conveyance allowances are provided to caregivers, the reimbursement is typically doled out only during designated school terms. Some countries and municipalities may require a new application for each school year.

Receiving a Conveyance Allowance

Allowances are typically delivered through a government office or an approved school directly into a designated bank account. The bank account is chosen by the applicant and listed on the conveyance allowance application. Calculations for a conveyance allowance are dependent upon enrollment of the student in a qualifying school, the distance traveled and the geographical location of a student. Changes to a conveyance route, a student's enrollment or a personal address change must be reported to the department or facility where the initial application was filed in order to receive an accurate allowance payment.