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 … Read more

Superannuation changes: Removal of the $450 per month salary or wages threshold and increase in the superannuation guarantee rate to 10.5%

We note below a few important changes to the Superannuation Guarantee system that take effect on 1 July 2022. Removal of the $450 per month salary or wages threshold On 22 February 2022 the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021, received Royal Assent. The bill, among … Read more

Is it really an effective salary sacrifice arrangement?

The concept of ‘salary sacrifice’, or ‘salary packaging’, has been a part of modern remuneration arrangements for many years now. In Taxation Ruling TR 2001/10 (issued way back in 2001) – the ATO outlines what it considers is an ‘effective’ salary sacrifice arrangement. In this article, we explore a recent case that involved a far … Read more

ATO announces novated lease data matching project

ATO announces data matching program on novated leases – employer implications? The ATO has advised it will be undertaking a data matching program with information sourced from novated lease providers in respect of the years 2018-19 to 2022-23. The ATO will source data from the following novated lease providers: Eclipx Group; LeasePlan; LeasePLUS; McMillan Shakespeare … Read more

Arrangements to access the FBT remote area housing exemption – what to watch out for

Non-arms length remote area housing arrangements? In 2020, in a three-part series (*links listed at the end of this article) we looked at the various remote area related housing concessions available under the Fringe Benefits Tax Assessment Act 1986 (‘FBT Act’). One of those concessions was the remote area housing exemption. The remote area housing … Read more

Salary sacrificing e-bike costs

Question Our organisation is looking into the possibility of offering our employees the option to salary sacrifice electric bikes. It is our understanding, providing the e-bike is restricted to travel to and from work and other private use that is minor, these e-bikes are exempt from FBT under subsection 47(6). If so, is it possible … Read more

The importance of adequate and current substantiation of salary packaged expense reimbursements

What happens if an employee has not (and cannot) provide an employer with adequate and current substantiation of salary-packaged expense reimbursements? Are there problems for both the employer and the employee? Consider this. Mary commences employment with a PBI in 2017 and elects to enter into a salary sacrifice arrangement to access her PBI exemption … Read more