GST – Significant proposed changes to GST recovery: Recovering estimates and directors’ personal liability

Our featured article for the month covers two proposed legislative changes to the recovery of GST – these are significant changes and are expected to be enacted very soon. These changes will hopefully not apply to your organisation, but we firmly believe it is crucial to be vigilant of potential risks caused by late BAS … Read more

FBT Q&A – Expense payment fringe benefits: Returning input tax credits to employees

We provide expense payment fringe benefits to our employees. This, in part, involves returning input tax credits (ITCs) to the employees via payroll. How are the returned ITCs treated in the hands of the employee? Question We provide expense payment fringe benefits to our employees. This, in part, involves returning input tax credits (ITCs) to … Read more

Payroll & GST Article – Director penalty notices

Directors are personally liable to pay certain unpaid tax owed by their company to the Commissioner of Taxation. Soon, this is likely to also include GST. This personal liability can be avoided by taking appropriate timely action. Directors need to be aware of when these liabilities can arise and which steps need to be taken … Read more

FBT Q&A – Can a departing employee salary sacrifice?

Question We have an employee who is leaving our organisation within the next month and wants to salary sacrifice her last pay to purchase two laptops. Are there any FBT or other tax issues that will prevent us from allowing this? Answer The ATO is fine with an employee salary sacrificing for benefits, provided they … Read more

Categories FBT

Eligibility – Applying for a franking credit refund

Certain organisations—such as deductible gift recipients (DGRs) and income tax exempt entities that are endorsed by the ATO—may be eligible for a refund of franking credits. This article provides a general overview of the eligibility criteria for organisations, potential limits on claiming refunds and the refund application process. In June 2019, the ATO released information … Read more

Payroll Q&A – Telecommunications allowance paid to councillors

Our councillors receive an annual telecommunications allowance that is paid fortnightly towards their telecommunications needs. How should this allowance be treated from a salary/wages, pay-as-you-go withholding (PAYGW) and superannuation perspective? Question Our councillors receive an annual telecommunications allowance that is paid fortnightly towards their telecommunications needs. How should this allowance be treated from a salary/wages, … Read more

FBT Q&A – 12-week register while two employees are on leave

Question We have chosen the ’12-week register’ method to calculate our car parking benefits. Within the designated period chosen, two of our employees have been on extended leave. Do we need to nominate a different 12-week period for these employees? Answer The 12-week period must be continuous and representative. Whether a chosen period is representative … Read more

Categories FBT

GST – Raising funds through raffle tickets

In a previous article (from the June TaxEd Update), we considered the GST and income tax treatment of fundraising events from the perspective of both fundraisers and attendees. In this article, we consider the GST implications associated with raising funds through raffle tickets and the non-profit sub-entity rules. A raffle is a lottery where entrants … Read more

Categories GST