Articles

Question I have a query in relation to computer software that is provided to employees to perform their employment duties. Where the employee is provided with two items of software, will the work related items exemption apply if: the software has identical functions; and the software is substantially different in nature? Answer The exemption provided […]

TR 2017/D6 – Deductibility of employees’ travel expenses (Part I) On 28 June 2017, the Commissioner issued TR 2017/D6 entitled Income tax and fringe benefits tax: when are deductions allowed for employees’ travel expenses?. The draft ruling sets out the Commissioner’s preliminary views on the general principles for determining whether an employee can deduct travel […]

TR 2017/D6 – Deductibility of employees’ travel expenses (Part II) In this second part of our discussion of TR 2017/D6, we summarise the numerous examples contained within the draft ruling. The proposed binding section of the draft Ruling contains 18 detailed examples illustrating the principles discussed above. Example 16 which considers the followings types of […]

Single Touch Payroll (STP) will apply to organisations with 20 or more employees (Substantial Employers), from 1 July 2018. Employers with 19 or fewer employees will have the option of adopting STP. However, STP-ready employers will be able to choose to adopt STP reporting earlier than 1 July 2018. Mandatory STP Reporting You will need […]

Last year, we drew attention to the Brisbane Bears Case. This decision dealt with payroll tax in the context of payments made by a sporting club to sportspersons for use of their images etc. Payroll tax is a state/territory tax. However, as the earlier article noted, payments for use of player images also implicitly raise […]

Question Where a course of study has the relevant nexus to an employee’s income producing activities it will be considered otherwise deductible for FBT purpose. Does the student amenities fee also receive this treatment? In particular, we will pay for an employee’s cost of subjects that are studied at university. In terms of the student […]

Question We provided a small car for two employees during the FBT year as follows: Employee 1 – From 1/4/16 to 20/11/16, the car is exclusively allocated to the employee for operational use during the day and driven home at night. Employee 2 – From 21/11/16 to 31/3/17, the car is allocated to the general car pool for […]

Question We give Gift/Voucher cards to staff members where all of the following circumstances apply: We give a Gift/Voucher card to a staff member for reward/recognition. These cards are given on an infrequent and irregular base. The value of a card is equal to or greater than the threshold value ($300). Is the gift card […]

Question Effective 1 July 2017 what is the rate of withholding where a supplier fails to provide an ABN? Answer Effective 1 July 2017, the rate of withholding where a supplier fails to provide an ABN reverts back to 47% (from 49%). The usual rules regarding the withholding and reporting obligations continue to apply, however.

Question An employer is considering allowing employees to salary package income protection insurance – what tax issues arise? Answer We assume the proposed salary packaging arrangements will be implemented in a way that would be recognized by the ATO as effective. In this regard see the general ATO ‘Requirements for an effective salary sacrifice arrangement’ […]