A car fringe benefit is provided if, at any time on a day, a car owned or leased by the employer (or associate or arranger) is used for a private purpose, or is available to the employee or associate for private use. A car will be taken to be available for private use (irrespective of …
Read moreFBT ‘ Corporate bailment agreement; availability for private use
The Federal Court has held that provision of transport by an uberX Partner (i.e. an Uber driver) to an uberX Rider (i.e. the passenger) was the supply of taxi travel for purposes of the GST Act – Uber BV v FCT [2017] FCA 110. Griffiths J summarised the case in the opening paragraph of his …
(1) Service Concession Arrangements: Grantors – draft AASB Standard The Australian Accounting Standards Board has issued a draft AASB standard Service Concession Arrangements: Grantors (Fatal-Flaw Review Version) (the Draft). The AASB seeks comments by 14 March 2017. The objective of the draft Standard is to prescribe the accounting for a service concession arrangement by a …
Read moreEligibility ‘ Recent Developments at a Glance: February 2017
Question: We utilise the operating cost method to determine our car fringe benefits liability. We are experiencing difficulties with obtaining valid entries for the ‘purpose of the journey’ requirement for the log book entries. We are considering the use of a detailed legend whereby employees could write a number in the purpose of the journey …
Read moreFBT Q&A ‘ Log book ‘purpose of journey’ description
Question: We provide a car to an employee to enable them to commute between home and work. During the day the same car is allocated to the pool car fleet and is used by several other employees purely for work related purposes during work hours. Is this car excluded from FBT reporting? Answer: A pooled …
Read moreFBT Q&A ‘ Pooled car: use of car by two or more employees
Question: Could benefits provided to local government Mayors and Councillors be subject to fringe benefits tax? Answer: An employee for FBT purposes is essentially an individual that is entitled to receive salary or wages. The term salary or wages includes payments to employees, directors and office holders that are subject to pay as you go …
Read moreFBT Q&A ‘ Are mayors and councillors employees for FBT purposes?
Question: The following question is asked in the general context of whether car logbooks should treat trips from a councillor’s home to Council as being business in nature. Is Councillor’s work itinerant in the following circumstances: Councillors currently work from a home office and are provided with hot desks to work at the Council Chambers, …
Question: In relation to s. 58P exemption (minor benefit), can you please clarify when a Council can utilise this? Currently, the minor benefits exemption for tax exempt body entertainment benefits is utilised. However, the minor benefits exemption is only used on a limited basis for other benefits. Answer: Section 58P of the FBTAA exempts certain …
Read moreFBT Q&A ‘ Council access to minor benefit exemption (s. 58P)
Question: For each of the following scenarios, can you please advise if FBT would be attracted: A Council pays for electronic portable devices and provides to employees for use at home. Can the exemption of 58X FBTAA be used and can this be extended to include warranties? If, for example, the electronic portable devices cost …
Question: In relation to Car Fringe Benefits where the taxable value is calculated under Section 10 of the Fringe Benefits Tax Assessment Act 1986 – Operating Cost Method, are insurance excesses payable by the insured to the insurer or smash repairer included in the car expenses calculation? Answer: In general terms, for FBT purposes the …
Read moreFBT Q&A ‘ Whether an insurance excess is included in a car expense calculation under s. 10