FBT Article ‘ can the reimbursement of an employee’s mortgage payment constitute an exempt living away from home accommodation benefit?

It is very common in the modern workforce for employees to be temporarily stationed in a town or city that is a considerable distance from where they and their family currently live. In the majority of these cases the employee will rent accommodation or is provided with accommodation rented by their employer in the new … Read more

FBT Q&A ‘ vehicle sold to employee for residual value

Question We are wondering if there are any FBT implications on the sale of a previously leased Council vehicle to an employee. Our lease over the vehicle expired last month and the vehicle has since been sold to the employee for the residual value paid by Council to acquire the vehicle from the financier? We … Read more

Salary Packaging Q&A ‘ Income protection and life insurance policy costs

Question Our organisation is planning to allow salary sacrifice for our employees in regards to their income protection insurance and life insurance policy costs. We will reimburse these policy costs and reduce their pre-tax salary accordingly. Can you please let me know if it will result in a fringe benefit tax liability or is there … Read more

GST Q&A ‘ GST and land improvements

Question Council recently sold a (almost vacant) block of land.  The land contains a redundant concrete water tank which will need to be demolished and removed by the purchaser.  Once this is done, the land will be suitable for residential development. Could you please advise whether this land sale would satisfy the requirements of a taxable supply (assuming that the normal requirements … Read more

Categories GST

GST Q&A ‘ GST and deposits

Question My question relates to deposits paid by Council to hire a facility.  Currently, when Council pays a deposit, GST is also paid.  It is my understanding that GST is not applied when a deposit is paid, but rather calculated after the service has been granted and the final balance is paid.  Some clarification would be appreciated.  … Read more

Categories GST

Payroll Q&A – Treatment of car allowance paid to employee re employer provided car

Question Our organisation pays a lump sum car allowance to certain employees in relation to cars provided by the employer to the employee. Employees use these cars for business and private purposes. Are these allowances subject to PAYG withholding and how should they be shown for Payment Summary reporting purposes. Answer Section 51AF ITAA 1936 … Read more