FBT

A car fringe benefit is provided if, at any time on a day, a car owned or leased by the employer (or associate or arranger) is used for a private purpose, or is available to the employee or associate for private use. A car will be taken to be available for private use (irrespective of […]

Question: We utilise the operating cost method to determine our car fringe benefits liability. We are experiencing difficulties with obtaining valid entries for the ‘purpose of the journey’ requirement for the log book entries. We are considering the use of a detailed legend whereby employees could write a number in the purpose of the journey

Question: We provide a car to an employee to enable them to commute between home and work. During the day the same car is allocated to the pool car fleet and is used by several other employees purely for work related purposes during work hours. Is this car excluded from FBT reporting? Answer: A pooled

Question: Could benefits provided to local government Mayors and Councillors be subject to fringe benefits tax? Answer: An employee for FBT purposes is essentially an individual that is entitled to receive salary or wages. The term salary or wages includes payments to employees, directors and office holders that are subject to pay as you go

Question: The following question is asked in the general context of whether car logbooks should treat trips from a councillor’s home to Council as being business in nature. Is Councillor’s work itinerant in the following circumstances: Councillors currently work from a home office and are provided with hot desks to work at the Council Chambers,

Question: In relation to s. 58P exemption (minor benefit), can you please clarify when a Council can utilise this? Currently, the minor benefits exemption for tax exempt body entertainment benefits is utilised. However, the minor benefits exemption is only used on a limited basis for other benefits. Answer: Section 58P of the FBTAA exempts certain

Question: For each of the following scenarios, can you please advise if FBT would be attracted: A Council pays for electronic portable devices and provides to employees for use at home. Can the exemption of 58X FBTAA be used and can this be extended to include warranties? If, for example, the electronic portable devices cost

Question: In relation to Car Fringe Benefits where the taxable value is calculated under Section 10 of the Fringe Benefits Tax Assessment Act 1986 – Operating Cost Method, are insurance excesses payable by the insured to the insurer or smash repairer included in the car expenses calculation? Answer: In general terms, for FBT purposes the

Question: We would like to know that staff can salary sacrifice the payment that they pay for skin checks? Answer: Staff can salary sacrifice any expense item which they incur, provided the employer agrees to it and the benefit is sacrificed from prospective salary (i.e. salary yet to be earned). The real issue here is

As part of a salary sacrifice arrangement an employee will often enter into a novated lease arrangement with their employee for the provision of a car. Under the terms of the novation the lease obligations are transferred to the employer for either the term of the lease, or the period for which the employee is