fbt

FBT year about to close, compliance blowtorch about to fire up

Practitioners should note that fringe benefits tax is firmly on the ATO’s radar screen this year. Over the past 18 months the ATO, through its FBT Taskforce, has launched several audits and reviews of employers in the SME sector. FBT year about to close, compliance blowtorch about to fire up Its compliance focus in particular

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FBT: What’s new for 2017?

The big change to FBT, which carries over from the previous FBT year, is the continued application of a 49% rate. This is due to revert to 47% on April 1, 2017 (therefore applying for the 2017-18 FBT year onwards), but for the current FBT year, 49% continues to apply. What’s new for FBT in

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Fringe benefits tax and entertainment update

In the run up to the end of the FBT year, the ATO reminds employers that a fringe benefit may be provided by another person on behalf of an employer, but may also be provided to another person on behalf of an employee (for example, a relative). Fringe benefits tax and entertainment update As far

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FBT 101 — and some common mistakes

If a business provides certain benefits to staff, or their associates, the business taxpayer may be up for fringe benefits tax (FBT). But there seems to remain ongoing misconceptions, or at worst misinformation, among many in business about the exemption or otherwise of certain benefits provided to employees. FBT 101 — and some common mistakes

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Novated leases and the deductibility of after-tax running costs

Including a car in a salary package is a popular remuneration arrangement, and doing so as part of a salary sacrifice package will often give rise the a “novated lease”.  Costs in operating the vehicle can also be salary sacrificed.  This is typically referred to a fully novated lease. A novated lease arrangement is a

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New fleet “safe harbour” approach for car fringe benefits

The ATO has announced that, after consultation and collaboration with business taxpayers and industry representatives, it has developed what it calls a “safe harbour” mechanism for calculating car fringe benefits under the operating cost method. In ATO parlance, a safe harbour is a guideline that allows taxpayers to make use of a simplified and efficient

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Some common FBT mistakes

If a business provides certain benefits to staff, or their associates, the business taxpayer may be up for fringe benefits tax (FBT). But there seems to remain ongoing misconceptions, or at worst misinformation, among many in business about the exemption or otherwise of certain benefits provided to employees. Generally, a condition of exemption is that

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Should you allow your employees to salary package?

Salary packaging is one way for an organisation to increase the take-home pay of its employees — and if done correctly, at no extra cost. Should you allow your employees to salary package? Basically, an employee agrees with their employer to forego part of their future salary or wages in return for the employer providing

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