Articles

We were recently requested to consider the case of a TaxEd member organisation who had acquired a car by way of gift. That is, no payment was made for the car (including stamp duty on transfer which was paid by the donor). The car was subsequently allocated to an employee who had full commuter use […]

On 6 April 2017, the Legislative Instrument PAYG Withholding variation for foreign resident capital gains withholding payments – income tax exempt entities (Legislative Instrument) was registered as F2017L00390. Background Purchasers and transferees of certain types of CGT assets must withhold an amount under Subdiv 14‑D of Schedule 1 to the TAA where they acquire the asset from […]

This article looks at a private binding ruling (Authorisation Number: 1013103814672 – ‘the PBR’) that considers whether a person was an employee for purposes of the superannuation guarantee legislation. It deals with the status of a salesperson who receives only commission payments. The ruling usefully considers factors (and identifies associated case law) in determining whether […]

Question We recently sold a number of our fleet cars to a leasing company at market value then leased them back from the leasing company. The cars did not leave our premises and are still registered under our business name. The subject cars are all aged less than 4 years old. Do we retain the […]

Question We have had a number of staff take on further higher education study during the FBT year. In all cases study leave under our current study leave policy has been approved, as it was accepted the course would be of benefit to the employee in undertaking their duties. Are such study costs otherwise deductible? […]

Question Certain car parking spaces are allocated to employees who commute using motorcycles – does this give rise to an FBT liability? Answer The Division 10A car parking fringe benefits FBT rules are predicated on the basis that a car is parked. A car is defined for FBT purposes as a motor vehicle (except a […]

Question Several years after a car was purchased, a GPS system was purchased and fitted to the vehicle. Do the costs that are incurred form part of the operating costs of the car for the year in which the device was purchased or is the cost added to the cost price of the vehicle? Answer […]

Income tax laws have been around for a long time, with the current income tax legislation essentially drawn from statutes first introduced in 1936 and 1997 (respectively the Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997). Fringe benefits tax legislation was introduced in 1986 (Fringe Benefits Tax Assessment Act 1986) and the […]

We remind TaxEd member employers of two key conditions of the car parking fringe benefit rules that must be satisfied prior to there being any FBT liability. These issues are particularly important for TaxEd employers providing parking outside major CBD areas where it can be expected the car parking FBT criteria are more likely to […]

Regulation 8 of the FBT Regulations prescribes benefits relating to pooled or shared cars as being excluded fringe benefits. Fringe benefits which are excluded fringe benefits are not included in the employee’s reportable fringe benefits amount. Where such a pooled or shared use exists during the year the benefit is an excluded fringe benefit in […]