Articles

Question Councillors receive an allowance which is determined by each council within limits set by the Victorian Government. Mayors and councillor allowances are also subject to the addition of 9.5% superannuation. Is the allowance taxable to the mayor and councillors? Answer Any remuneration, sitting fee or allowance paid to a local government elected member is […]

If an employer gains public benevolent institution (PBI) status during the FBT year, do employees become eligible to use the full $30,000 FBT exemption cap in that year? In the June 2019 TaxEd Update, we considered the FBT implications of a public benevolent institution (PBI) that was previously entitled to the higher $30,000 FBT cap […]

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 […]

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 […]

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, […]

The ATO has recently confirmed their view that the FBT exemption for taxis only applies to vehicles that are licensed to operate as a taxi. (Refer to FBT and taxi travel – QC 59508). In other words, if your employees travel using ride-sourcing services such as Uber, the travel expense may be subject to FBT. […]

We receive many queries about the income tax and GST implications of fundraising events, both from those hosting and those attending the events. We’ve prepared an example to help illustrate the tax consequences for organisations planning on hosting these events. It is important to also keep in mind the income tax consequences of any attendees, […]

Question We have two questions in relation to GST charged on transactions with overseas suppliers: Our council has recently received an invoice from an overseas supplier which does not have an ABN, however, does have a VAT ID. GST has been charged on this invoice. Can the supplier charge GST with no ABN and can […]

Businesses will often face the termination of an employee’s employment. There are a number of reasons this may happen—for example, via an amicable resignation or via a redundancy—and in many instances the employer will pay the exiting employee a termination package. This termination package can consist of various elements such as unused leave payouts, transfers […]

Do you offer salary sacrifice arrangements to your employees? This article discusses the timing issues that you need to consider where an employee is required to contribute towards the costs of non-cash benefits provided under an effective salary sacrifice arrangement. Effective salary sacrifice arrangements Most organisations offer salary sacrifice arrangements as part of remuneration packaging […]