Reportable Fringe Benefits – preparing to report

As employers prepare 2021/22 FBT returns it is normal practice to simultaneously prepare Reportable Fringe Benefits data attributable to individual employees. Some timely reminders as you go about this task: only where an employee has the requisite more than $2,000 in taxable value of Reportable Fringe Benefits (pre gross up at 1.8868) does an amount … Read more

Using the correct cents per KM rates for employee work related car travel reimbursements and FBT purposes

Employee work related car expense deductions and employer cents per KM reimbursements The ATO has released draft legislative instrument LI 2022/D8 setting the cents per KM rate commencing 1 July 2022 at $0.75 per KM (the current rate is $0.72 per KM for the period ending 30 June 2022). It is important to note that … Read more

No April Fool’s Day joke! FBT car parking rules to change again – what does that mean for you?

In November 2019 the ATO issued a draft ruling TR 2019/D5 outlining an updated view of the application of the Fringe Benefits Tax (‘FBT’) rules for car parking fringe benefits. The draft ruling, once finalised, was intended to replace TR 96/26 (which was withdrawn at that time). On 16 June 2021, the ATO issued Taxation … Read more

Employee COVID-19 testing expenses: Welcome tax relief confirmed

In our February 2022 TaxEd Update, we covered the tax issues related to employers providing or reimbursing costs related to employees taking COVID-19 tests (PCRs , Rapid Antigen style tests, etc). In that article, we flagged problems whereby FBT potentially could apply however noted the Prime Minister had made comments indicating the Government would move … Read more

FBT and car parking: Be ready for 1 April 2022

We have previously focused on the Tax Office’s ruling TR 2021/2  (July 2021 Update and December 2021 Update) and particularly changes to the ATOs view as to what is a ‘commercial car parking station’.  In short the ATO now will treat as a commercial car parking station one that does not have a primary purpose … Read more

Are elected members and other officials of local governing bodies entitled to superannuation support?

In August 2021, the NSW Office of Local Government published draft guidelines for ‘audit, risk and improvement committees’ (ARIC’s) for local councils in NSW. In broad terms, the draft guidelines consider (amongst other things) how frequently members of the ARIC must meet, the ability for ARIC members to be involved with multiple ARICs, whether ARIC … Read more

ATO NFP update for the year ahead

The ATO have published their first issue for the 2022 year of their NFP blog Straight from the source. In this issue Assistant Commissioner Jennifer Moltisanti talks about the ATO’s ‘transformation roadmap’ and its objectives for NFPs for the year ahead. We recommend Government and NFP organisations register for Straight from the source as it always … Read more