Question An employee purchased a portable electronic device in March 2021 (the prior FBT year). However, we did not reimburse her until the 2022 FBT year. Can we apply the section 58X exemption in the 2022 FBT year? Answer The provision that exempts certain work-related items – section 58X of the FBT Act – reads […]
The exemptions under sections 8(2) and 47(6) of the FBT Act apply where there is no private use of the vehicle during the year of tax and at a time when the benefit was provided other than: – work-related travel of the employee: and – other private use by the employee or an associate of the
Question One of our employees is provided with a fully maintained work 1 tonne or more load carrying vehicle. The employee commutes from home to work each day in this vehicle and parks at a commercial parking station within which we have some dedicated leased bays. Are we liable for FBT on this parking arrangement?
Question We have a public event on our premises & provide light refreshments consisting of pizza, sandwiches, and non-alcoholic events. Would this constitute meal entertainment with FBT payable for employees that attend the event? The cost per head for the event is less than $300. We do not use the meal entertainment 50/50 valuation rules
Member Q&A – Meals provided at public event Read More »
In the FBT landscape, an employer leasing a car or entering into a novated lease in respect of a car is a common transaction and one which many of our members will be familiar. A lease is a contract which confers the right to use an asset belonging to one party (i.e. the lessor) to
Minimum lease residuals – revised ATO guidelines and what to watch out for? Read More »
Question An employee makes daily trips to neighbouring towns within our office’s operational zone. The employee leaves at 6am and returns by 6pm that day, with the maximum distance travelled being approximately 150km each way. This employee then buys breakfast, morning tea, lunch & coffees throughout the day. Is FBT payable on the employee’s meal
Member Q&A – Employee meals during daily travel commute Read More »
Editor’s note: The government has recently announced no FBT applies to COVID-19 testing. The Government announcement will be covered in detail in our March 2022 Update. Are there FBT implications for COVID-19 testing? You may require your employees to undertake COVID-19 testing before attending the workplace. Employees may also be required to have COVID-19 tests
FBT implications of employee COVID testing costs Read More »
Question As part of the total remuneration package to an employee, we are looking to pay an accommodation allowance direct to the employee. We are based in a remote area as is the accommodation which will be rented by the employee and become the employees usual place of residence/main residence. Will this allowance qualify as
Member Q&A – Should we pay an employee accommodation allowance in a remote area? Read More »
Question We conducted a new staff welcome function. The function was held on work premises on a work day and catering in the form of light finger food with no alcohol was provided. Are the catering expenses meal entertainment? Answer When considering whether something is entertainment we need to focus on the ATO tests of
Member Q&A – Is the provision of light finger food entertainment? Read More »
“Just when I thought I was out……they pull me back in!” – Godfather III. In our July 2021 Tax Update we advised that the ATO had appealed the Federal Court Decision in Virgin Australia Airlines Pty Ltd v FCT [2021] FCA 523. Virgin contracted with owners of car parks adjacent to the Sydney, Brisbane and Perth
Virgin Airlines & car parking: The odyssey continues Read More »
