Articles

A recent case UNSW Global Pty Ltd v Chief Commissioner of State Revenue [2016] NSWSC 1852 examined what type of transactions are intended to be covered by the employment agency rules found in the NSW Payroll Tax Act 2007 . In the particular, UNSW Global procured persons to: act as expert witnesses in matters (such […]

A recent case, Victorian Farmers Federation v Commissioner of State Revenue [2017] VCAT 19 (the VFF) saw the membership based Federation fail in its attempt to be recognised as charity for payroll tax purposes. The VFF’s objects included: to advance, promote and protect the interest of Members, the interest of Agricultural industries in which members […]

Public Benevolent Institutions (PBIs) are able to access significant Commonwealth tax concessions. One the requirements for access to the concessions is recognition that the entity is a PBI for purposes of the ACNC. This article outlines the ACNC’s view as set out in the Commissioner’s Interpretation Statement: Public Benevolent Institutions (CIS 2016/03 -approved 19 December […]

Question: One of our business unit divisions has a quarterly staff meeting/seminar off premises. The seminar goes for 2 hours and includes morning tea. Is this subject to FBT? The total cost is $1,100 – $800 for the premises and $300 for food. Answer: A light meal in the form of morning tea at a […]

Question: A long serving employee is retiring and upon his departure we decided to provide him with ownership of their employer provided car. The provision of the car was (previously part of a salary sacrifice arrangement with the employee. What are the FBT implications of this arrangement? Has a property fringe benefit arisen? If so, […]

Normally, amounts paid by a local government council to councillors are assessable to the councillor when received (notwithstanding an absence of an employer/employee relationship). It may also be taken to have been received under ss. 6-5(4) ITAA 1997 where it is otherwise dealt with on behalf of the councillor, or alternatively s. 15-2 of the […]

Question: If a former employee (along with other employees) was made redundant in July 2016 due to an organisational restructure, are they able to return to work for the same employer in the same tax year either as an employee or contractor? Answer: A payment will qualify for concessional tax treatment as a genuine redundancy […]

Question: One of the advantages of the Single Touch Payroll (STP) initiative is for employers to do away with the need to issue Annual Payment Summaries to employees given the ATO will have the relevant information by way of what is provided to it under the STP system. What is the position though for Reportable […]

The operating cost method of calculating the FBT payable on a car fringe benefit requires more onerous paperwork to be kept than the statutory formula method. Part of this paperwork includes maintaining a log book of travel undertaken in the car for a minimum period of 12 weeks. The logbook that is kept is then […]

Question: With the introduction of the $5,000 cap in regards to salary packaged meal entertainment and entertainment facility leasing expense benefits commencing from 1 April 2016, what impact does this have for a PBI employer where, for example, meal entertainment is provided directly to employees not via salary packaging. Is this now potentially subject to […]