Below we have compiled a quick reference guide of the key FBT rates and thresholds for 2021/22 including a comparison to 2020/21. We have also included lodgement dates for the FBT 2021 return. These rates and thresholds are available on the ATO website. ¹To be eligible for the 25 June 2021 lodgement date, a tax …
Read moreFBT Return lodgement dates, Rates and Thresholds for 2021/22
We have recently completed our annual FBT Roadshow and once again many of the complexities of FBT were revealed through questions raised in the sessions. One common issue centred around employee relocation costs and how best to structure these costs from both the employee and the employer’s perspective. In many cases it seems that the …
Read moreManaging employee relocation costs in a tax effective manner
Question We have recently hired a new employee. The employee was based interstate but having applied for been selected for the job will now relocate As part of the hiring process we have paid relocation expenses for this new employee – including 4 weeks accommodation, travel costs, and removalist costs. Given the employee is new …
As a part of the ongoing administration of taxation and superannuation laws the ATO provides various forms of information and guidance. The most common of these is the ATO website, and for more specific technical guidance the ATO issues public rulings. From time to time, the ATO undertakes reviews of public rulings and various ATO …
Read moreCurrent ATO Advice under development and matters under consultation
Due to the various travel and operational restrictions placed on businesses and individuals by State and Territory Governments in response to COVID-19, many ‘entertainment’ functions and events, such as seminars, EOFY functions and Christmas functions were cancelled. Where the cost or a deposit paid in relation to these events is non-refundable a question arises as …
Read moreFBT treatment of non-refundable cancelled events and related expenses such as flights
The ATO has recently released a set of guidance documents (i.e., TR 2021/D1, PCG 2021/D1 and TR 2021/1) which outline the income tax and FBT treatment of the cost of travelling on work, as well as the distinction between travelling on work and living at a location. TR 2021/D1 explains the ATO’s preliminary views on …
In this article, we explore some issues relevant to 2020/21 FBT compliance for cars. The reference in this article to cars is intended to cover only passenger vehicles, not utes, vans etc. which may attract an FBT exemption in circumstances where (amongst other things) the only private travel is home/work travel, and/or other private travel …
Read moreCar fringe benefits: Can you reduce your FBT liability in 2021?
Question We wish to confirm whether benefits to staff consisting of remote area housing assistance in the form of employee rent reimbursements/payment are reportable fringe benefits? Answer The reportable fringe benefits regime does not apply to all fringe benefits an employer may provide to employees. Certain benefits (called ‘excluded benefits’) are not required to be …
Read moreMember Q&A – Is remote area housing rent assistance a reportable fringe benefit?
Question We are working out the FBT on novated lease vehicles using the operating cost method. We are wanting to check which costs to include in the calculation. The salary packaging provider has provided the following costs: Vehicle Lease Fees Tyres Maintenance Insurance Renewal Fuel Fees and Charges (from the salary packaging provider) Are all …
Question If we provide a vehicle hired from a car rental company to a staff member and the staff member used the vehicle to travel between home and the workplace, garaged the vehicle at home overnight and had some other private use of the vehicle will this give rise to FBT? Answer A fringe benefit …
Read moreMember Q&A – Is FBT payable where an employee is provided with a hire car?