Managing employee relocation costs in a tax effective manner

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 …

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Q&A – Relocation costs for new employee

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 …

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Categories FBT

Current ATO Advice under development and matters under consultation

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 …

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FBT treatment of non-refundable cancelled events and related expenses such as flights

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 …

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Categories FBT

ATO releases guidance on the income tax and FBT treatment of cost of travelling, accommodation, food and drink

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 …

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Car fringe benefits: Can you reduce your FBT liability in 2021?

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 …

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Member Q&A – Is remote area housing rent assistance a reportable fringe benefit?

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 …

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Member Q&A – Novated lease cars – what costs do you include when using the operating cost method?

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 …

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Categories FBT