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FBT

FBT Q&A – Expense payment fringe benefits: Returning input tax credits to employees

We provide expense payment fringe benefits to our employees. This, in part, involves returning input tax credits (ITCs) to the employees via payroll. How are the returned ITCs treated in the hands of the employee? Question We provide expense payment fringe benefits to our employees. This, in part, involves returning input tax credits (ITCs) to …

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FBT Q&A – 12-week register while two employees are on leave

Question We have chosen the ’12-week register’ method to calculate our car parking benefits. Within the designated period chosen, two of our employees have been on extended leave. Do we need to nominate a different 12-week period for these employees? Answer The 12-week period must be continuous and representative. Whether a chosen period is representative …

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Categories FBT

FBT Alert: Ride-sourcing travel services such as Uber may be subject to FBT

The ATO has recently confirmed their view that the FBT exemption for taxis only applies to vehicles that are licensed to operate as a taxi. (Refer to FBT and taxi travel – QC 59508). In other words, if your employees travel using ride-sourcing services such as Uber, the travel expense may be subject to FBT. …

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Eligibility & FBT – PBIs that lose endorsement during an FBT year: Effect on FBT cap exemption access

The FBTAA provides an exemption for certain employers where the total taxable value of benefits (other than excluded benefits) provided do not exceed certain dollar caps. Currently the following thresholds apply: Employer 2018-19 2017-18 Public benevolent institution $30,000 $30,000 Health promotion charity $30,000 $30,000 Public & non-profit hospitals $17,000 $17,000 Public ambulance service $17,000 $17,000 …

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Salary Packaging and FBT – Timing issues of employee contributions and the effect of a journal entry

Do you offer salary sacrifice arrangements to your employees? This article discusses the timing issues that you need to consider where an employee is required to contribute towards the costs of non-cash benefits provided under an effective salary sacrifice arrangement. Effective salary sacrifice arrangements Most organisations offer salary sacrifice arrangements as part of remuneration packaging …

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