Heads up, there may be some changes to remote area tax concessions and payments. The Productivity Commission has suggested reforms. The Productivity Commission has called for significant reforms to the tax concessions and payments to residents and businesses in remote Australia, so they are better targeted and fairer. The Commission was asked to review three …
Read moreFBT and Payroll – Remote area tax concessions and payments
Relief from discrepancy in the FBT treatment of taxi travel and riding-sharing travel services is ‘in hand’. Long-standing readers of the TaxEd newsletter will be familiar with the tortuous history of ride-sharing travel services for tax purposes, especially in relation to FBT. Current treatment of ride-sharing travel services The nature of ride-sharing travel services, particularly …
Does a fringe benefit arise where an employer pays for an employee’s annual Myki (public transportation) card on the basis that the employee will repay the amount interest-free over the next 12 monthly pay periods? Question We have paid for an employee’s annual Myki card pass on the basis the employee will repay us the …
Read moreFBT Q&A – Payment of employee annual public transportation pass
Question An employee has provided receipts for reimbursement of their relocation costs. One of the receipts is for a bond clean of his prior residence. Would this expense be exempt from FBT under s. 58c (or any other provisions)? Answer Section 58C will not cover such expenditure because the exemption deals with costs that are …
Read moreFBT Q&A – Reimbursing relocation costs: Bond clean of rental property
If an employer gains public benevolent institution (PBI) status during the FBT year, do employees become eligible to use the full $30,000 FBT exemption cap in that year? In the June 2019 TaxEd Update, we considered the FBT implications of a public benevolent institution (PBI) that was previously entitled to the higher $30,000 FBT cap …
Read moreEligibility & FBT – Securing PBI status during an FBT year: Effect on FBT exemption cap
Question We have several employees who are on-call to support one of our teams. These employees respond to after-hours call outs to service a range of requests, with the most common arising from weekend services. These employees can use our utility vehicles for private use, and we have not required employee contributions for the private …
Read moreFBT Q&A – Provision of tools of trade to on-call employees
Question This Q&A clarifies a response from our FBT Q&A – Expense payment fringe benefits: Returning input tax credits to employees, which was issued in our July 2019 TaxEd Update. One of our members asked the following question: ‘We provide expense payment fringe benefits to our employees. This, in part, involves returning input tax credits …
Read moreFBT Q&A – Returning input tax credits to employees: Clarifying treatment of GST
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 …
Read moreFBT Q&A – Expense payment fringe benefits: Returning input tax credits to employees
Question We have an employee who is leaving our organisation within the next month and wants to salary sacrifice her last pay to purchase two laptops. Are there any FBT or other tax issues that will prevent us from allowing this? Answer The ATO is fine with an employee salary sacrificing for benefits, provided they …
Read moreFBT Q&A – Can a departing employee salary sacrifice?
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 …
Read moreFBT Q&A – 12-week register while two employees are on leave