With a change of Government comes new policies and the scrapping of policies previously announced under the former Government (which may include pending legislation lapsing in Parliament). In this article we have identified a few key tax areas in which the change of Government may affect issues previously covered for TaxEd members. FBT Exemption for … Read more
Question If a staff member attends a third party conference and wins a lucky door prize to the value of $1,000 (entry was based on providing a feedback form for the conference), would this need to be declared as a gift and subject to FBT as being over the $300 minor benefit threshold? Answer It … Read more
Where an employer pays/reimburses an employee’s road toll expenditure or allows the employee to use the employer’s electronic road toll tag, a fringe benefit may arise, depending on the particular usage of the vehicle. Payment/reimbursement of an employee’s road toll expenses is prima facie an expense payment fringe benefit. Use by an employee of an … Read more
As 30 June approaches, one of the annual end year processes that may be required of a not for profit (NFP) that receives dividend income from their investment portfolio or trust distributions is to apply for a refund of the franking credits attached to the dividends/distributions. The process of applying for a franking credit refund … Read more
Question We are considering providing in-house therapeutic massage for all employees. Is this an exempt fringe benefit pursuant to the ‘work related preventative health care’ exemption? The preventative health care component will consist of: massage to reduce tightness in muscles and any incidence of sprain or strain and to educate individuals on how to avoid … Read more
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
At our recent TaxEd FBT Roadshow, the treatment of electric vehicles was regularly raised. In particular people wanted to confirm how electric cars are treated for FBT purposes. In short, for now at least, electric cars are treated as per others cars for FBT purposes. The FBT definition or a ‘car’ is taken from section … Read more
Question If an employee, who has full private use of a one tonne vehicle and who is required to carry bulky items (e.g. ladder, tools etc,) travels to various sites directly from his home, including during out of hours and on weekends, would those trips be eligible for home to work business travel? The various … Read more
Every year we are asked some tricky questions during the FBT Roadshow series that require one to take a deep breath and think……’why didn’t I become a carpenter like I wanted to when I was a kid rather than an FBT specialist!’. One such question was the operation of the car/motor vehicle ‘workhorse’ exemption where … Read more
Question An employee mistakenly used our corporate credit card to pay for private holiday accommodation instead of using his own personal credit card. It was agreed for the employee to repay the amount on an interest-free basis. The employee requested if repayments could be made by way of monthly instalments over the next 11 months. … Read more