FBT

Reportable Fringe Benefits – preparing to report

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 …

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Member Q&A – How do we classify private trips undertaken in a ‘workhorse’ vehicle that is carrying bulky equipment?

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 …

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FBT ‘workhorse’ exemption – can it apply on a part-year basis?

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 …

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Member Q&A – Employee allowed time to repay personal expenditure accidentally paid on corporate credit card

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. …

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Member Q&A – Does the timing of the reimbursement for a section 58X ‘eligible work related item’ impact which FBT year applies to the benefit?

Question An employee purchased a portable electronic device in March 2021 (the prior FBT year). However, we did not reimburse her until the 2022 FBT year. Can we apply the section 58X exemption in the 2022 FBT year? Answer The provision that exempts certain work-related items – section 58X of the FBT Act – reads …

Member Q&A – Does the timing of the reimbursement for a section 58X ‘eligible work related item’ impact which FBT year applies to the benefit? Read More »

Can the car/motor vehicle ‘workhorse exemption’ apply where an employee lives away from home during the week?

The exemptions under sections 8(2) and 47(6)  of the FBT Act apply where there is no private use of the vehicle during the year of  tax and at a time when the benefit was provided other than: – work-related travel of the employee: and – other private use by the employee or an associate of the …

Can the car/motor vehicle ‘workhorse exemption’ apply where an employee lives away from home during the week? Read More »

Using the correct cents per KM rates for employee work related car travel reimbursements and FBT purposes

Employee work related car expense deductions and employer cents per KM reimbursements The ATO has released draft legislative instrument LI 2022/D8 setting the cents per KM rate commencing 1 July 2022 at $0.75 per KM (the current rate is $0.72 per KM for the period ending 30 June 2022). It is important to note that …

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Member Q&A – Employer provided parking provided for 1 tonne or more load carrying vehicle – is there an FBT exposure?

Question One of our employees is provided with a fully maintained work 1 tonne or more load carrying vehicle. The employee commutes from home to work each day in this vehicle and parks at a commercial parking station within which we have some dedicated leased bays. Are we liable for FBT on this parking arrangement? …

Member Q&A – Employer provided parking provided for 1 tonne or more load carrying vehicle – is there an FBT exposure? Read More »

This article provides a general summary of the subject covered and cannot be relied upon in relation to any specific instance. It is not intended to be, nor should it be relied upon as, a substitute for professional advice. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use.