GST Q&A – Grant from the Commonwealth passed onto a non-GRE
Question: What would be the implications if we invoiced somebody for an amount GST Free, when we received payment they disagreed wi…
Salary Packaging Q&A – sacrificing to a mortgage offset account
A recent Interpretative Decision (ATO ID 2013/54) considered the meaning of the phrase “covered by an appropriation” in the new s 9-17(3) of the GST Act.
When you are dealing with tripartite arrangements, you need to ensure that all supplies and acquisitions are clearly identified and that the consideration goes where it’s supposed to. This case proved a very costly lesson for PASC and potentially Mr Felson, with more than $250,000 in input tax credits at risk.
For in-house benefits provided on or after 22 October 2012, the Tax Laws Amendment (2012 Measures No 6) Act 2013 removes the concessional FBT treatment of these benefits if they are accessed by way of a salary sacrifice/packaging arrangement.
It is a no-brainer that salary packaging benefits that are fully exempt from FBT under an effective salary sacrifice arrangement will produce a tax saving advantage for employees. It is also clear that no real tax saving advantage ensue for employees where they salary package benefit that are fully taxable under prevailing FBT legislation.