The importance of adequate and current substantiation of salary packaged expense reimbursements

What happens if an employee has not (and cannot) provide an employer with adequate and current substantiation of salary-packaged expense reimbursements? Are there problems for both the employer and the employee? Consider this. Mary commences employment with a PBI in 2017 and elects to enter into a salary sacrifice arrangement to access her PBI exemption … Read more

JobMaker hiring credit: What is it & how does it work?

What are the proposed details of the JobMaker Scheme? Can your organisation utilize the Scheme? Is a particular prospective employee within the ambit of the Scheme?   The JobMaker Hiring Credit scheme that was announced as part of the 2020-21 Federal Budget (‘Scheme’) is designed to improve the prospect of young individuals getting employment in … Read more

FBT – Cost base of donated car

Does a donated car come with a ‘silver FBT lining’? The concept of base value for car fringe benefit purposes centres on the cost price of the car. But what if an employer incurs no cost in acquiring a car? Consider the case of an income tax-exempt body acquiring a car by way of gift. … Read more

Categories FBT

Member Q&A – GST and ‘Meals on Wheels’

Question Could you please advise whether we add on GST to Meals on Wheels fees that are: not covered in a client’s Home and Community Care Package or is additional to their package charged to other service providers of Home and Community Care services. Answer We note the provisions applying to this area are quite … Read more

Categories GST

Payroll Q&A – Late payment of superannuation

Question My organisation was not able to pay its employees superannuation by the due date. What happens now? Answer Before outlining the consequences of missing a superannuation payment, we note the due dates for payment of superannuation, as outlined on the ATO website, are as follows: *When a due date falls on a weekend or … Read more

FBT Q&A – Work-related item declaration

Question Are we required to obtain an employee declaration regarding the provision of an exempt work-related benefit consisting of a portable electronic device to be used by the employee primarily for work purposes? Answer The section 58X exemption for a portable electronic device does not require a declaration from the employee. However, it is incumbent … Read more

Categories FBT

FBT Q&A – Reimbursement of Volunteer out of Pocket expenses

Is reimbursement of a volunteer’s expenses subject to FBT? Question We are a Council and we have a register of volunteers who assist with various events held in the city at times and are provided training in order to undertake ‘meet and greet’ duties for interstate and/or international visitors. As part of these duties the … Read more

Categories FBT