Managing employee relocation costs in a tax effective manner

We have recently completed our annual FBT Roadshow and once again many of the complexities of FBT were revealed through questions raised in the sessions. One common issue centred around employee relocation costs and how best to structure these costs from both the employee and the employer’s perspective. In many cases it seems that the … Read more

GST and grants: Need more guidance? Is there a better way?

From TaxEd’s perspective, we regularly receive questions via our Q&A service asking whether grants paid or received by government entities (including departments and/or councils) and not-for-profits are subject to GST. The majority of these questions agitate on whether there is ‘sufficient nexus’, or whether there is ‘no supply’. In our responses, we regularly refer to … Read more

Salary sacrificing e-bike costs

Question Our organisation is looking into the possibility of offering our employees the option to salary sacrifice electric bikes. It is our understanding, providing the e-bike is restricted to travel to and from work and other private use that is minor, these e-bikes are exempt from FBT under subsection 47(6). If so, is it possible … Read more

Q&A – Relocation costs for new employee

Question We have recently hired a new employee. The employee was based interstate but having applied for been selected for the job will now relocate As part of the hiring process we have paid relocation expenses for this new employee – including 4 weeks accommodation, travel costs, and removalist costs. Given the employee is new … Read more

Categories FBT

Current ATO Advice under development and matters under consultation

As a part of the ongoing administration of taxation and superannuation laws the ATO provides various forms of information and guidance. The most common of these is the ATO website, and for more specific technical guidance the ATO issues public rulings. From time to time, the ATO undertakes reviews of public rulings and various ATO … Read more

FBT treatment of non-refundable cancelled events and related expenses such as flights

Due to the various travel and operational restrictions placed on businesses and individuals by State and Territory Governments in response to COVID-19, many ‘entertainment’ functions and events, such as seminars, EOFY functions and Christmas functions were cancelled. Where the cost or a deposit paid in relation to these events is non-refundable a question arises as … Read more

Categories FBT

National Redress Scheme & its impact on ACNC Charity/Basic Religious Charity status

Proposed new ACNC Governance Standard A registered charity must ensure that it continues to be entitled to registration with the Australian Charities and Not-for-profits Commission (ACNC). This includes meeting all the conditions for initial registration and ongoing registration obligations, including complying with the ACNC Governance Standards, where applicable the ACNC External Conduct Standards, as well … Read more

ATO releases guidance on the income tax and FBT treatment of cost of travelling, accommodation, food and drink

The ATO has recently released a set of guidance documents (i.e., TR 2021/D1, PCG 2021/D1 and TR 2021/1) which outline the income tax and FBT treatment of the cost of travelling on work, as well as the distinction between travelling on work and living at a location. TR 2021/D1 explains the ATO’s preliminary views on … Read more