Timing is crucial when it comes to salary sacrificing leave entitlements. The Commissioner’s view on the taxation implications of salary sacrifice arrangements is discussed in Taxation Ruling TR 2001/10. A salary sacrifice arrangement is an arrangement between an employer and an employee whereby the employee agrees to forgo part of their future entitlement to remuneration […]
Salary packaging – Salary sacrifice of accrued leave Read More »
Can a councillor salary package amounts otherwise due? Question Can a Councillor salary package amounts otherwise due from Council and instead receive use of a Council provided car (in a novated lease scenario)? Answer The simple answer is ‘yes”. However there are some important conditions that apply and it is useful to understand why salary
Salary Packaging Q&A – Councillor access to salary packaging Read More »
It is important to structure salary sacrificing arrangements to be beneficial to both the employer and employee. This often involves the employer passing on costs associated with providing the benefit. One of these costs is the luxury car adjustment. This article discusses whether this adjustment is relevant to income tax exempt employers and whether the
Can an employee vehicle trade-in, or cash payment, contributed towards the acquisition of a car through a novated leased reduce the employer’s FBT base value? This is a common question but may have an unexpected outcome for employers. The provision of a car to an employee through novated lease financing is a widely used as
Salary Packaging – Novated leases: Trade-ins and cash contributions towards cost of car Read More »
Do you offer salary sacrifice arrangements to your employees? This article discusses the timing issues that you need to consider where an employee is required to contribute towards the costs of non-cash benefits provided under an effective salary sacrifice arrangement. Effective salary sacrifice arrangements Most organisations offer salary sacrifice arrangements as part of remuneration packaging
Our employee is ceasing their salary packaging arrangement and has excess after-tax contributions. If we refund these contributions, will they be subject to PAYG withholding? Alternatively, can we hold the excess contributions for use in a later FBT year? Question We have an employee who is ceasing his salary packaging arrangement (novated lease vehicle) and
Money flows out under digital process such as Single Touch Payroll (STP) – what if money could flow in through a digital process? E-Invoicing (a step beyond electronic invoicing) is coming. Readers will be aware that for many businesses, money has been flowing out through a fully digitised process under the STP regime for some
General Article – E-invoicing, not electronic invoicing – there is a difference Read More »
Question We would like to provide an employee with a declaration that shows they satisfy the requirements of an exempt benefit for an electronic device they have purchased. How should the declaration be worded? Answer The s. 58X exemption for a portable electronic device does not require a declaration from the employee. However, it is
