It is not often there is a court decision involving the interpretation of provisions of the Fringe Benefits Tax Assessment Act 1986. (FBT Act). Strangely though many of the recent cases have involved the interpretation of the car parking fringe benefit provisions. In the recent case, Virgin Australia Airlines Pty Ltd v FCT [2021] FCA … Read more
We continue to get many questions seeking clarification regarding the FBT rules regarding how to treatment equipment ‘provided’ for use by employees in work from home scenarios. Whilst it is not our usual practice, we reproduce an article published recently which covers off the more common questions we get asked. Despite there being some possible … Read more
The ATO has confirmed the car parking threshold for the 2021/22 FBT year is $9.25. The threshold is one of a number of matters an employer needs to consider when determining whether it provides car parking fringe benefits. Understanding the car parking threshold is critical to correctly complying with the car parking fringe benefit rules. … Read more
Question Typically, our long service awards are paid as Westfield gift cards and are exempt from FBT under the long service awards exemption. In the most recent case, the staff members have received a winery gift card and restaurant gift card instead. Can we still apply the long service awards exemption? Or is this seen … Read more
Question The ATO guidance regarding car parking fringe benefits and COVID states: Closure of work car park If, on a particular day, your office is closed due to COVID-19 and therefore the work car park is also closed, you will not have provided a car parking benefit as there will be no car space available … Read more
Question We have had many staff home garage cars due to COVID lockdown and these cars were only driven for maintenance purposes. The ATO has indicated that for the purpose of operating cost method the cars will not be ‘held’ for the purposes of providing fringe benefits during that period. Are we able to choose … Read more
The ATO has provided some useful and taxpayer friendly guidance regarding the FBT treatment of various scenarios where an employer provides equipment to an employee to support a ‘working from home’ scenario. The ATO guidance (titled COVID-19 and working from home benefits) was issued on 12 March 2021 and can be viewed here. In this … Read more
As part of the 2020–21 Federal Budget, the Government announced that it would introduce an FBT exemption for retraining and reskilling benefits that employers provide to redundant, or soon to be redundant, employees where the benefits may not be related to their current employment. Currently, unless the benefit satisfies the ‘minor benefits’ exemption, FBT is … Read more
Question Is a ‘once off’ deduction allowed under the Government’s “temporary full expensing” measure for assets purchased by individuals earning salary & wages (employees)? If so, can the “otherwise deductible” rule now apply, for example, if an employee is reimbursed for the cost of home office equipment that exceeds $300. Answer The temporary full expensing … Read more
Consider this; an employee who has been provided with a work horse vehicle by their employer, decides to travel to the coast for the long weekend. The employee will leave work on Friday evening, drive directly from their place of employment to a caravan park (150 kms away) and stay in a cabin until Monday … Read more