Salary packaging – Salary sacrifice of accrued leave

Timing is crucial when it comes to salary sacrificing leave entitlements. The Commissioner’s view on the taxation implications of salary sacrifice arrangements is discussed in Taxation Ruling TR 2001/10. A salary sacrifice arrangement is an arrangement between an employer and an employee whereby the employee agrees to forgo part of their future entitlement to remuneration … Read more

Effective FBT control environments

Are you effectively managing your FBT risk? It’s an opportune time to review your processes. With the 2020 FBT return lodgment now behind you and with your organisation’s FBT processes and protocols still at the forefront of your mind, there couldn’t be a better time to undertake a review of the system for the management … Read more

FBT Q&A – Provision of gifts to long serving employees

Is a local government organization entitled to claim FBT exemption for long service gifts under s. 58Q of the FBT Act? Question Would you please provide guidance in relation to section 58Q of the FBT Assessment Act? We are a Council and we provide gifts to long serving employees at a long service awards ceremony. … Read more

FBT – Car Parking threshold for FBT 2021

If employer-provided parking is supplied to employees, have you considered whether the applicable car parking threshold is exceeded for the 2020-21 FBT year? We remind TaxEd members that the car parking threshold for the 2020/21 FBT year is $9.15. The threshold is one a number of matters an employer needs to consider when determining whether … Read more

FBT and Eligibility – Cents per km rates

Have you factored in the 2020-21 car expense rates for FBT and Income Tax purposes respectively? FBT – cents per km rate for motor vehicle (other than a car) applied from 1 April 2020 When an employee uses a motor vehicle other than a car for private use, it gives rise to a residual benefit … Read more

Payroll – JobKeeper: The latest of many changes

The stream of JobKeeper changes continues – are you up to date with these?   Over the last few newsletters, we have featured articles regarding the JobKeeper Payment (‘JKP’) scheme. Although we had hoped that we would be able to give our readers a break this month, there have been more changes and amendments announced … Read more

FBT – Expansion of the taxi travel fringe benefit exemption

There has been a retrospective legislative change that includes ride-sourcing in the FBT exemption relating to taxi travel. Section 58Z of the FBTA Act provides that certain taxi travel is an exempt benefit. It was drafted prior to the advent of ride-sourcing and its reliance on the definition of taxi as a ‘motor vehicle that … Read more

FBT – Why don’t PBIs and other s. 57A employers pay FBT on non-salary packaged meal entertainment?

Being an employer within s. 57A of the Fringe Benefits legislation gives rise to an unexpected favourable outcome. One of many unexpected outcomes that arises in an FBT context is the fact that entities covered by s. 57A of the Fringe Benefits Tax Assessment Act 1986 (‘FBT Act’) are not subject to FBT on non-salary … Read more