Articles

The ATO has considered whether a smart watch can be exempt from FBT in a recent private binding ruling (PBR). The PBR discusses whether a specific type of smart watch would be considered a portable electronic device to which s. 58X of the FBTAA can apply. S. 58X of the FBTAA provides that each of […]

Question: Our supplier has stated that they have been deemed ineligible to obtain a new ABN. They believe this is due to their business turnover being below $35,000 a year. The supplier has proceeded to carry on their business, issuing invoices for amounts exceeding $82.50 (GST inclusive). Because the invoiced amounts exceed $82.50 and the supplier is adamant they […]

Question Council is planning to have an employee posting overseas for six months.  For the reasonable food component, if Council only pays additional costs (ATO overseas reasonable limit minus $42 statutory amount), these additional costs should be exempted from FBT. Please confirm if this is correct. Should we have this stated in the living-away-from-home declaration […]

Answer The specific provisions regarding genuine redundancy payments (GRPs) provide that an employee must be dismissed before the day they turn 65 for the payment to qualify as a GRP. If retirement age under the employment contract is a lesser age, then dismissal must occur prior to that age. Therefore, even though your employee is […]

FBT, GST and other tax issues can be complex and can cause confusion about compliance requirements. We previously published an article discussing the use of Private Rulings to address this uncertainty. Sometimes, specific issues can affect a group of taxpayers. Rather than each individual taxpayer applying for their own Private Ruling, the group may prefer […]

From an FBT and income tax perspective there is no restriction on the types, or amounts, of benefits that can be salary sacrificed by an employee. Refer to Taxation Ruling TR 2001/10 for further guidance. As an FBT taxable employer, you are not eligible for the FBT capping thresholds. In consequence, any salary sacrifice arrangement, […]

The Taxation Board of Review is conducting a review of costs of complying with FBT. As part of the review, the Board is seeking to estimate compliance costs and identify reasons for these costs. The review may affect our readers in several ways: you may want to consider registering to participate in focus groups (currently […]

‘Ordinary time earnings’ (OTE) is defined under s. 6(1) of the Superannuation Guarantee (Administration) Act 1992 (SGAA). OTE includes amounts paid in relation to ordinary hours of work including over-award payments, shift-loading and commission. The definition under the subsection specifically excludes lump sum payments in lieu of unused sick leave, annual leave and long service […]

Changes to rules regarding eligibility measures for various Federal Government benefits/payments and income tests (effective 1 January and 1 July 2017) impact Reportable Fringe Benefit disclosure for all employers on 2017/18 Payment Summaries. 2017/18 Payment Summaries require an employer to respond to the following question: Is the employer exempt from FBT under section 57A of […]

With the release of the 2018-19 budgets for all Australian States and Territories, excluding South Australia, there have been several proposed and approved changes to payroll tax rates, thresholds, rebates and schemes. The Australian Capital Territory has not announced any recent changes to payroll tax. New South Wales: Payroll tax threshold increases over the next […]