Articles
GST – GST, Damages and Insurance
The GST implications for dealing with compensation for loss or damages follows the general GST rules, but may not provide an intuitive outcome. There are also special GST rules that apply where insurance claims are involved. This article provides an overview of these different rules. When it comes to dealing with GST in situations where …
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GST – The GST gap: Key risk areas identified in the 2017-18 GST administration annual performance report
The GST gap, which is the difference between the amount of GST that should be paid and the actual amount paid, helps us identify common GST mistakes and areas that attract the ATO’s attention. This article discusses key risk areas identified by the ATO and what...
read morePayroll Q&A – Reportable fringe benefits: Vehicle with carrying capacity of more than one tonne provided to multiple employees
Question We have provided a vehicle with more than one tonne load carrying capacity to more than one employee. The vehicle has been used for private purposes. Does a reportable fringe benefit arise? Answer Where a vehicle with more than one tonne load carrying capacity is used for private purposes by more than one employee, …
General Article – E-invoicing, not electronic invoicing – there is a difference
Money flows out under digital process such as Single Touch Payroll (STP) – what if money could flow in through a digital process? E-Invoicing (a step beyond electronic invoicing) is coming. Readers will be aware that for many businesses, money has been flowing...
read moreFBT Q&A – Car transferred to employee as part of redundancy package
Question An employee was made redundant and as part of his redundancy package there was the transfer of ownership of a vehicle to him with an approximate market value of $23,000. Please provide guidance as to correct treatment of this benefit. Answer As the car was...
read moreFBT Q&A – Treatment of memberships and subscriptions
Question Do “CPA” (or similar) membership fees for an accountant and “Planning Institute” membership fees for a planning engineer fall within the section 58Y FBT exemption for memberships and subscriptions? Answer Only the following memberships/subscriptions are eligible for the section 58Y FBT exemption: (a) a subscription to a trade or professional journal; (b) an entitlement …
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FBT – Determining the ‘cost price’ of a car
Establishing the cost price of a car is fundamental to determining the taxable value. In this article, we explore what is included in the cost price of a car. A fundamental concept in determining the taxable value of a car fringe benefit is the calculation of the ‘cost price’ of the car. The cost price …
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GST Q&A – Uber and Tax Invoices
GST and the need for tax invoices should be a relatively straightforward topic. However, sometimes, when it comes to new arrangements – such as those involving mobile and other electronic applications – it isn’t always clear. Question Background We have strict guidelines on the use of ride booking services. Taxis or ride booking services such …
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FBT Q&A – Treatment of holiday party decorations
Question In conjunction with the yearly Christmas party, we have incurred some expenses for Christmas decorations. Can you please advise if this will be added to the total cost of the meal entertainment as we use 50/50 method to value meal entertainment? Answer Providing meal entertainment means: providing entertainment by way of food, drink providing …
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GST – New ATO GST and Division 81 website content and updated GST regulations, but has anything changed?
The ATO recently updated its website in relation to how Division 81 of the GST law operates. This followed release of revised GST regulations which take effect on 1 April 2019. The big question is whether anything has changed? New GST Regulations take effect on 1 April 2019 having been passed in the A New Tax …