We are often asked via the TaxEd members Q&A portal about the FBT treatment where an employee’s self-education course fees are reimbursed by their employer. It is very common for staff to undertake further study in areas that assist or enable them to perform their employment role to a higher level. In most cases the …
Read moreFBT – Reimbursement of HELP funded employee course fees
It is relatively common for employers to buy and give vouchers or gift cards to staff (for example, as a gift or reward). This article looks at the GST and FBT implications that arise. Vouchers bought and given to staff Many employers provide vouchers or gift cards to staff. There are various reasons why vouchers/gift …
When reflecting on an organisation’s FBT compliance, it is useful to consider any compliance strategies that may make compliance simpler and possibly achieve costs savings for future FBT years. When it comes to calculating an employer’s FBT obligation for car benefits, there are two methods available, the statutory method and the operating cost method. Logbook …
Read moreFBT compliance strategies for cars that might reduce your FBT payable
Does endorsement of a PBI employer part-way through the year allow access to the full $30,000 grossed up FBT exemption cap? Question We are an employer that is a public benevolent institution (PBI). We only became ‘endorsed’ by the ATO as a PBI part way through the FBT year. Are we entitled to the full …
Read moreFBT Q&A – Section 57A employer endorsed part way through the year
Question We have a staff member with a car fringe benefit provided under a novated lease. The lease began on 2/7/2015 for a term of 60 months (i.e. 5 years) and so was due to end on 2/7/2020. Prior to the lease expiring the staff member chose to rollover the lease for another two year …
Read moreFBT Q&A – When can an employer reduce a car’s base value?
Are you effectively managing your FBT risk? It’s an opportune time to review your processes. With the 2020 FBT return lodgment now behind you and with your organisation’s FBT processes and protocols still at the forefront of your mind, there couldn’t be a better time to undertake a review of the system for the management …
Is a local government organization entitled to claim FBT exemption for long service gifts under s. 58Q of the FBT Act? Question Would you please provide guidance in relation to section 58Q of the FBT Assessment Act? We are a Council and we provide gifts to long serving employees at a long service awards ceremony. …
Read moreFBT Q&A – Provision of gifts to long serving employees
If employer-provided parking is supplied to employees, have you considered whether the applicable car parking threshold is exceeded for the 2020-21 FBT year? We remind TaxEd members that the car parking threshold for the 2020/21 FBT year is $9.15. The threshold is one a number of matters an employer needs to consider when determining whether …
Have you factored in the 2020-21 car expense rates for FBT and Income Tax purposes respectively? FBT – cents per km rate for motor vehicle (other than a car) applied from 1 April 2020 When an employee uses a motor vehicle other than a car for private use, it gives rise to a residual benefit …
Where a vehicle is used for full private use successively by different employees in an FBT year, does each employee have a reportable fringe benefit? Question Our CEO left after 6 months of the FBT year, in October 2019. He had full private use of a work-provided motor car. He returned the car on the …
Read moreFBT Q&A – Reportable FBT in relation to motor vehicle benefit