Articles

Question Our university often charges for lab space, use of equipment and consumables in one form or another for various lengths of time. Historically, we have always treated this supply as taxable in terms of GST because it is consumed in Australia. With the introduction of changes to GST-free supplies to non-residents in October 2016, […]

Consider the following scenario: An organisation has made an overpayment of salary/wages in FY 2017-18 in error. The organisation has remitted the relevant PAYG instalments to the ATO in connection with the mistaken calculation of wages/salary. The total of the amount actually paid to the employee and the amount of PAYG instalments remitted to the […]

Much effort goes into determining whether fringe benefits by way of meal entertainment are provided to employees. Meal entertainment is entertainment by way of food, drink, and travel and accommodation in relation to such entertainment. For example, staff lunches at restaurants, the Christmas party and employee social events involving food and alcohol. For employers exempt […]

Question Could you please confirm whether a gift worth $800 provided to a long serving employee is exempt from fringe benefits tax. Answer When recognising long service of an employee, non-cash awards to employees in recognition of services of not less than 15 years are an exempt benefit – refer section 58Q of the FBTAA. It is noted a […]

Under the FBT rules the use of certain eligible vehicles is an exempt benefit where the private use of those eligible vehicles by current employees during an FBT year is limited to work-related travel, and other private use that is ‘minor, infrequent and irregular’. The ‘million-dollar question’ over the years is what is considered minor, […]

Private use of motor vehicles can be an FBT nightmare for administration and record-keeping. It is a frequent source of queries received by TaxEd. The FBT concession for ‘minor, infrequent and irregular’ private use of eligible (workhorse) vehicles  can be especially problematical.  This concession, together with the more specific private use concession for ‘work related […]

When it comes to entertainment type expenditures the rules for income tax-exempt employers are different to those faced by for-profit or non-income tax exempt employers. As a result, it is critical that the rules are understood and applied correctly. The key rules concern: the concept of a Tax Exempt Body Entertainment fringe benefit – it […]

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. Currently two of the volunteers undertake ‘meet and greet’ activities at the airport. The airport has asked if they could seek […]

The Uber decision In the UBER case, the Court had to consider whether ride-sourcing drivers were providing taxi travel for GST purposes. Taxi travel for GST purposes means travel that involves transporting fare-paying passengers by taxi or limousine. The word taxi is not defined for GST purposes and was essentially considered to mean a vehicle available […]

Question We are sending an employee on overnight travel to attend a business awards gala dinner. There is no conference or any other activity other than the gala dinner which we have been nominated for an award. Is this meal entertainment for FBT purposes, and if so, are all travel and accommodation costs associated with […]