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News
30 TAX COURSES NOW AVAILABLE TO TRAIN ALL OF YOUR STAFF
1 September 2020
WE ARE DELIGHTED TO PROVIDE ALL AUSTRALIAN ENTITIES WITH AN OPPORTUNITY TO TRAIN ALL OF YOUR STAFF IN EVERY ASPECT OF TAXATION AS IT APPLIES TO ENTITIES IN AUSTRALIA
SEE ATTACHED BROCHURE FOR FULL DETAILS
AUSTRALIA'S MOST...
Include sales of new property in your BAS
24 July 2019
If you recently supplied (sold) new residential property or land that new residential property could be built on, you need to report goods and services tax (GST) in your business activity statement (BAS).
The ATO claim...
FBT on home phone and internet expenses
24 July 2019
FBT on home phone and internet expenses
An expense payment fringe benefit may arise when an employer pays a third party or reimburses an employee for their home phone and internet expenses.
Working out the taxable value
To...
Exempt car and residual benefits: - NEW RULES RELEASED 3 WEEKS AGO
16 January 2018
New draft guidelines have been published.
Once completed, these guidelines will apply for the 2018 FBT years and later years.
The guidelines create new rules for determining whether or not the use of a vehicle by...
ATO CONFIRMS MERE EXPECTATIONS DO NOT CREATE SUPPLIES
16 January 2018
Because GST is intended to be broad based, a supply may manifest itself in various ways. For example, a supply may be mixed, composite or neither and an analysis of a transaction may indicate one...
GST TRAINING 2017
5 September 2017
GST TRAINING 2017 – HOW GST WORKS IN YOUR ORGANISATION
REGISTER NOW AND SAVE WITH EARLY BIRD
WHAT YOU’LL LEARN
- HOW GST IMPACTS EVERY PART OF YOUR BUSINESS
- ALL THE RULES APPLYING TO GST IN YOUR ORGANISATION
- ALL OF THE...
Making cross-border supplies to Australian consumers
14 June 2017
Supplies to Australian consumers
If you supply services, rights or digital products to an Australian consumer the supply is 'connected with Australia' under paragraph 9-25(5)(d).
Even if your supply is not made to an Australian consumer (and...
GST on digital goods and services
14 June 2017
This GST change will also take effect on July 1, 2017. Simply put, it applies the 10% GST tax to all digital goods and services distributed to Australian consumers.
Digital goods refer to products without a...
New GST on low-value imported goods
14 June 2017
From July onwards, all goods imported by Australian consumers, even those worth less than $1,000, will be subject to 10% GST.
International vendors who sell to Australians and make more than $75,000 per year doing so...
Limits for FBT entertainment benefits
13 January 2016
From 1 April 2016, there will be limits on the use of fringe benefits tax (FBT) salary packaged meal entertainment and entertainment facility leasing expenses (meal and other entertainment benefits). These limits aim to improve...
Smart-card can only be operated by the employee to provide transport for that employee
13 January 2016
An employee's use of the travel smart-card provided by the employer can a residual benefit as per section 45 of the FBTAA.
The residual benefit that arises from the employee's use of the travel smart-card...
Use of the Mobilyser app report to calculate an income tax deduction or fringe benefits tax liability
13 January 2016
Mobilyser app report can be used to determine the deductible proportion for the purposes of completing a Recurring expense payment fringe benefit declaration or a Recurring residual fringe benefit declaration....
FBT - Introducing a cap for salary sacrificed meal entertainment and entertainment facility leasing expenses
15 December 2015
In the 2015 - 16 Budget, the Government announced the introduction of a separate single grossed up cap of $5,000 for salary sacrificed meal entertainment and entertainment facility leasing expenses (meal entertainment benefits) for employees....
Acceptable GPS system for car log book records and for odometer records
15 December 2015
The ATO has confirmed by virtue of expressing its opinion in a class ruling that the following features must be present in an electronic logbook before it qualifies as valid:
An employer is entitled to a...
Subject: GST and ex-gratia payments made in lieu of local government rates
19 August 2015
Question 1
Are ex-gratia payments made by Entity A to you in lieu of local government rates treated as consideration, for supplies made by you to Entity A under section 9-5 of the GST Act?
Answer
No....
Correcting an amount on a payment summary already issued
4 August 2015
Where you have inadvertently understated an employee's reportable fringe benefits amount by $195 or less, you do not have to amend the employee's payment summary unless the Commissioner is of the view that you have...
Benchmark interest rate applicable for the year of income that commenced on 1 July 2015
4 August 2015
For the income year that commenced on 1 July 2015, the benchmark interest rate is 5.45% per annum....
WHEN TO ENTER LOGBOOK DETAILS AFTER A JOURNEY
4 August 2015
A recent class ruling by the ATO appears to indicate that it is acceptable to enter details of the purpose of a journey at least up to 1 week after the journey is completed.
Submit member...
ELECTRONIC LOGBOOKS - THE NEED FOR 'PURPOSE OF JOURNEY'
4 August 2015
Why the journey was made
Paragraph 28-125(2)(d) of the ITAA 1997 requires the reason for the journey to be shown. Before a logbook derived from an electronic system can be accepted, the user must be...
WHN A LOGBOOK PERIOD CAN BE LESS THAN 12 WEEKS IN DURATION
4 August 2015
Subsection 162H(1) of the FBTAA provides that the applicable log book period will be a continuous 12 week period, unless the car is held for less than 12 weeks. If the car is held for...
BUDGET 2015 - TAX CHANGES UPDATE
13 May 2015
Please send your questions relating to the budget tax measures through your account page.
- Growing Jobs and Small Business — changes to the fringe benefits tax system for work‑related electronic devices. Currently, an FBT exemption...
Exempt benefits: work-related counselling - training courses or activities for employees being made redundant
7 April 2015
The FBTAA specifies that certain benefits will be exempt benefits. Paragraph 58M(1)(a)(iv) of the FBTAA provides that an expense payment benefit is an exempt benefit where the recipients expenditure is in respect of 'work-related counselling'...
Benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2015
7 April 2015
The benchmark interest rate for the fringe benefits tax (FBT) year commencing on 1 April 2015 is 5.65 per cent per annum. This rate replaces the rate of 5.95 per cent that has applied for...
The rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing on 1 April 2015
7 April 2015
The rates to be applied where the cents per kilometre basis is used for the fringe benefits tax (FBT) year commencing on 1 April 2015 are:
Engine capacity Rate per kilometre
0 - 2500cc 51 cents
Over 2500cc 61 cents
Motorcycles 15 cents...
indexation factors for valuing non remote housing for the fringe benefits tax year commencing on 1 April 2015
7 April 2015
The indexation factors for the purpose of valuing non-remote housing for the fringe benefits tax (FBT) year commencing 1 April 2015 are:
New South Wales 1.032
Victoria 1.020
Queensland 1.022
South Australia 1.020
Western Australia 1.028
Tasmania 1.011
Northern Territory 1.043
Australian Capital Territory 0.989...
Goods and services tax: cancellation fees
14 January 2015
If a supplier does not fully reimburse a customer, or only reimburses part of the GST paid for a cancelled supply, any decreasing adjustment as a result of the cancelled supply, or corresponding increasing adjustment...
GST AND CREDIT CARD SURCHARGES
14 January 2015
A credit card surcharge imposed by a merchant on a customer for a credit card transaction forms part of the consideration for the supply of the goods or services made by the merchant. There is...
Superannuation payment of salary and wages after the death of an employee to the deceased estate
19 November 2014
In the following circumstances the employer will have an individual superannuation guarantee shortfall under section 19(1) of the SGAA.
'.. an amount of salary and wages owing to an employee at the time of their death...
When are the duties of the employment of an employee of a government body exclusively performed in, or in connection with, a public hospital or 'non-profit hospital'
19 November 2014
The duties of the employment of an employee of a government body are exclusively performed in, or in connection with, a public hospital or a 'non-profit hospital'2for the purposes of paragraph 57A(2)(b) of the Fringe...
Goods and services tax: development lease arrangements with government agencies
19 November 2014
A new draft Ruling explains the goods and services tax (GST) treatment of particular transactions arising in the context of development lease arrangements entered into between government agencies and private developers. These arrangements typically have...
Temporary budget repair levy - FBT implications
22 July 2014
The package of Bills proposing to impose the temporary budget repair levy have been passed by the House of Representatives without amendment and now move to the Senate (the Bills have been referred to the...
Reform of salary sacrificed 'in-house' fringe benefits
8 May 2014
The reforms will apply to in-house benefits provided under salary packaging arrangements made on or after 22 October 2012, and from 1 April 2014 for in-house benefits provided under salary packaging arrangements made before 22...
Reform of salary sacrificed 'in-house' fringe benefits
8 May 2014
The reforms will apply to in-house benefits provided under salary packaging arrangements made on or after 22 October 2012, and from 1 April 2014 for in-house benefits provided under salary packaging arrangements made before 22...
Recent and proposed law changes In-house fringe benefits
8 May 2014
Under the FBT law, there are different types of benefit that may be provided by employers to employees (or their associates) where the employer is in the business of providing the same or similar goods...
Exempt Car Benefits: work related travel
2 May 2014
Issue
Is travel by an employee in their employer's car, between their place of residence and the employee's place of employment in relation to a second employer, 'work-related travel' for the purposes of paragraph (a) of...
GST-proposed changes for going concern and farm land sales
29 April 2014
The Federal Government announced it intends to remove the current GST-free treatment for the sale of going concerns and farm land, and provide a reverse charge arrangement. The only time frame given for this change...
In what circumstances is the supply of a credit card GST-free
28 April 2014
The supply of a credit card facility will be GST-free under Item 4 to the extent it is intended that the cardholder will use the facility to undertake a transaction when they are physically outside...
Reasonable amounts for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit
28 April 2014
A new Determination sets out the amounts that the Commissioner considers reasonable under section 31G of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) for food and drink expenses incurred by employees receiving a living-away-from-home...
Meal Entertainment Fringe Benefit: travel - reimbursement of car parking fees
28 April 2014
Car parking fees reimbursed by the employer are an expense incurred in providing the employee with travel as the fees were incurred as part of the employee's journey.
The question arises as to whether the...
Overpaid GST
28 March 2014
Today the Tax Laws Amendment (2014 Measures No.1) Bill 2014 was introduced into the House of Representatives. The Bill proposes to repeal the current regime dealing with refunds of GST found in s 105-65 of...
Reportable Fringe Benefits
7 March 2014
For the FBT year ending 31 March 2015, the taxable value must still be more than $2,000 before an amount is required to be reported, but the minimum grossed-up value changes to $3,773...
For the FBT year ending 31 March 2015, the FBT rate will be 47%
7 March 2014
For the FBT year ending 31 March 2015, the FBT rate will be 47%
authority at
http://www.ato.gov.au/Rates/FBT/...
Fringe Benefits Tax Car Parking Fringe Benefits: all-day parking
7 March 2014
Issue
Is a fee charged by the operator of a commercial parking station for vehicles entering the station from 1.00 p.m. a fee charged for 'all-day parking' as defined in subsection 136(1) of the Fringe Benefits...
Omitted fuel tax credits - choice between revising the original BAS to claim credits and claiming credits in a later BAS
28 February 2014
Where an entity did not claim a fuel tax credit entitlement in an earlier activity statement, the entity can choose between revising its earlier activity statement under subsection 65-5(1) of the Fuel Tax Act 2006...
Supplies made by an endorsed charitable institution are GST-free
28 February 2014
Where capital assets that diminish in value over time are utilised in making a supply, the consideration provided by the supplier to acquire those assets can be taken into account in determining whether the supply...
Death benefits dependant - adult child on youth allowance
28 February 2014
Ataxpayer in receipt of Youth Allowance at the time of the death of a parent is a death benefits dependant of the parent for the purpose of section 302-195 of the Income Tax Assessment Act...
Fringe Benefits Tax Remote area holiday transport fringe benefit: gross taxable value - recipients contribution
28 February 2014
For the purposes of working out the amount of the reduction of a remote area holiday transport fringe benefit under section 60A of the FBTAA, '50% of the gross taxable value' of the fringe benefit...
GST treatment of fees and charges imposed by NSW Councils
28 January 2014
During January the ATO has released its views on the treatment of approximately 200 typical fees and charges levied by NSW Local Governments.
If you are a paid up member or are registered for the 2014...
FBT 2014 CRITICAL DEVELOPMENTS INCLUDING CARS
23 November 2013
ALL THE CHANGES FOR 2014 The critical CHANGES for CARS AND VEHICLES – where do you stand? ALL OF THE 2014 CHANGES AND DEVELOPMENTS PLUS LOTS MORE ALL FBT CATEGORIES COVERED – CONCENTRATING ON CARS...
GST and payments for seconded employees
22 October 2013
Issue
Is a government agency, making a taxable supply under section 9-5 of the A New Tax System (Goods and Services tax) Act 1999 (GST Act), when it receives payment for the secondment of its employees...
LOG BOOK RECORDS IN TWO SEPARATE DOCUMENTS
1 October 2013
As noted in the submission, the definition of ‘log book records’ is to be found in sub-section 136(1) of the FBTAA. The definition is as follows:
“log book records, in relation to...
Valid log book
3 September 2013
The ATO confirmed that in order for information to constitute a valid log book for car fringe benefits, the information does not have to be maintained in the same document. The important thing is that...
Proposed reforms to the FBT treatment of cars
3 September 2013
General consensus is that it is now a wait and see scenario until after the Federal election on September 7....
‘Is a local hospital network a “public hospital”
3 September 2013
The draft tax determination dealing with ‘Is a local hospital network a “public hospital” for the purposes of s 57A of the FBTAA?’ has been referred back to the Public Rulings Panel for consultation. The...
Goods and services tax: adjustment notes
28 August 2013
The ATO has issued a new ruling.
This Ruling sets out the requirements for adjustment notes under Division 29 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).1
In particular, the...
Telematics system for car log book records and for odometer records
15 August 2013
If you are considering using a telematics system for car log book records and for odometer records, you should ensure that the system produces information which complies with ATO requirements....
Fringe Benefits Tax Amendment – 17 July 2013
7 August 2013
The Fringe Benefits Tax Amendment (DisabilityCare Australia) Act 2013 amends s6 of the Fringe Benefits Tax Act 1986 to increase the FBT rate from 46.5% to 47% for FBT years commencing on or after 1...
Tony Abbott reaffirms commitment to reverse FBT changes
7 August 2013
Tony Abbott says changes to fringe benefits tax are just another hit to the cost of living for Australian families and will be dumped along with the carbon tax....
FT CAR VALUATION CHANGES
18 July 2013
The government has announced that the fringe benefits tax (FBT) statutory formula method is to be abolished for all new contracts entered into from yesterday. This means that only the log book (operating cost)...
Council fees and charges new development - GST and the recovery of waste levy and carbon pricing mechanism costs by waste disposal facility operators
16 July 2013
Please note a very recent decision made by the ATO regarding Council fees and charges and which has not been covered in a ruling:
Council, as a waste disposal facility operator, may be liable for GST...
Exempt Car Benefits: work related travel
4 July 2013
Travel by an employee in their employer's car, between their place of residence and the employee's place of employment in relation to a second employer, is NOT 'work-related travel' for the purposes of paragraph (a)...
Exempt benefits - relocation transport - cost of visa application for a non-resident employee to remain in Australia
4 July 2013
If an employer pays the costs of a visa application for a non-resident employee to remain in Australia, the benefit provided in respect of relocation transport will not be exempt under section 58F of...
Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2013-14 income year?
4 July 2013
This Determination sets out the amounts that the Commissioner considers are reasonable ( reasonable amounts ) for the substantiation exception in Subdivision 900-B of the Income Tax Assessment Act 1997 (ITAA 1997) for the 2013-14...
GST and the application of the margin scheme to taxable supplies to associates for no consideration
15 April 2013
An entity can use the margin scheme to work out the GST payable on a taxable supply of real property that was held prior to 8 December 2008 and made after 24 March 2010 to...
What is the benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2013?
11 April 2013
The rate of 6.45 per cent is used to calculate the taxable value of:
·
a fringe benefit provided by way of a loan;...
What are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arisa car for the fringe benefits tax year commencing on 1 April 2013?
11 April 2013
Cents per kilometre rates - basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing...
GSTR 2013/1 Goods and services tax: tax invoices
11 April 2013
Document intended to be a tax invoice
It must be clear from the document that it was intended to be a tax invoice or recipient created tax invoice.12 This is an objective test that must...
Fuel tax credits: vehicles of less than 4.5 tonnes GVM travelling on a public road whilst providing safety support to a vehicle engaged in road maintenance, repair or construction
11 April 2013
Issue
Is a safety vehicle with a gross vehicle mass (GVM) of less than 4.5 tonnes travelling on a public road, for the purposes of section 41-20 of the Fuel Tax Act 2006 (FTA), when it...
Developer contributions and Division 81
19 March 2013
A payment, or the discharging of a liability to make a payment, is not the provision of * consideration to the extent the payment is an * Australian fee or charge that is of a...
GST and registration of a representative of an incapacitated entity when the incapacitated entity is neither registered nor required to be registered
19 March 2013
The representative cannot register under section 23-10 of the GST Act in its capacity as the representative of the incapacitated entity if the incapacitated entity is neither registered nor required to be registered for GST....
Goods and services tax: GST treatment of developer contributions and other dedications of land made to NSW councils
19 March 2013
This Ruling sets out the Commissioner's opinion on the way in which the relevant provision(s) identified below apply to the defined class of entities, who take part in the scheme to which this Ruling relates....
Goods and services tax: when a payment for a supply fails, is a failed payment fee charged by the supplier consideration for a supply?
19 March 2013
The payment of a failed payment fee is not consideration1 for a supply in the circumstances covered by this Determination.
2. This Determination applies where:
·
...
Fringe benefits tax: reasonable amounts under section 31G of the Fringe Benefits Tax Assessment Act 1986 for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit, for the fringe benefits tax year commenc
19 March 2013
Table 1: Amounts of reasonable food and drink - within Australia
Per week
One adult $233
Two adults $350
Three adults $467
One adult and one child $292
Two adults and one child $409
Two adults and two children $468
Two...
GSTR 2013/D1 Goods and services tax: adjustment notes
19 March 2013
This draft Ruling sets out the requirements for adjustment notes under Division 29 of the A New Tax System (Goods and Services Tax) Act 1999 ( GST Act).1
2. In particular, the draft Ruling outlines:
...
Amount of input tax credits relating to employee reimbursements
18 March 2013
The amount of the ITC for a creditable acquisition under section 111-10 of the GST Act is reduced under section 11-30 of the GST Act if the acquisition is partly creditable.
Section 11-30 of the...
GSTR 2012/5 Goods and services tax: residential premises
2 January 2013
This Ruling considers how Subdivision 40-B and Subdivision 40-C of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) apply to supplies of residential premises.
The Ruling does not consider the issue...
Fringe Benefits Tax Exempt benefits: payments to approved worker entitlement funds
26 November 2012
Contributions made for income protection insurance do not constitute exempt benefits in terms of section 58PA of the FBTAA....
Fringe Benefits Tax Associate: authority of the State
26 November 2012
A local government council is an 'authority of the State' for the purposes of the extended definition of 'associate' in the Fringe Benefits Tax Assessment Act 1986 (FBTAA).
...
Fringe Benefits Tax Exempt car benefits: private use
26 November 2012
The transporting of the employee's family member is a 'private use' of the car for the purposes of paragraph 8(2)(b) of the FBTAA as the use of the car is not exclusively in the course...
Fringe Benefits Tax Car fringe benefits: business journey
26 November 2012
Where the transportation of the family member during the journey is an application of the car to a private use and that application results in the provision of a fringe benefit in relation to the...
Fringe Benefits Tax Exempt car benefits: excepted private use
26 November 2012
The transporting of the employee's family member is an excepted 'private use' for the purposes of paragraph 8(2)(b) of the FBTAA as the use of the car for this purpose is minor, infrequent and irregular...
GST and ex-gratia payments made in lieu of local government rates
29 October 2012
Ex-gratia payments made by Entity A to a local government in lieu of local government rates are not consideration for supplies made to Entity A. Therefore, you are not making taxable supplies to Entity...
Expense payment fringe benefit: recipients contribution
26 October 2012
If an employee is provided with an expense payment fringe benefit in relation to the payment of a proportion of the interest incurred on a loan granted to them by their employer, the payment by...
Changes to FBT rules affecting in-house benefits
26 October 2012
The change announced by the Government today in the Mid-Year Economic and Fiscal Outlook 2012‑13 will apply:
from 22 October 2012 for salary sacrifice arrangements entered into from 22 October 2012, and
...
Exempt benefits: reimbursement of parking fees - remote area employees
25 October 2012
Where an employer reimburses an employee for fees incurred to park the employee's car at the local airport whilst the employee is working interstate at a remote location, the reimbursement of the parking fees will...
GST and representative of an incapacitated entity acting as both supplier and recipient of the representative's administration services
25 October 2012
Entity A, an administrator acting in its capacity as a representative for an incapacitated entity is entitled to input tax credits (ITCs) under section 58-10 of the A New Tax System (Goods and Services Tax)...
GST and Division 81 of the GST Act
25 October 2012
Amendment Regulation 2012 (No.2) specifically state that judicial system daily hearing fees are not consideration for a supply....
Goods and Services Tax and Division 81
25 October 2012
The payment to you of a fee for pre-examination of a plan is the provision of consideration under subsection 81-10(2) because it is a fee that is prescribed by paragraph 81-10.01(e) of the GST Regulations....
GST and supplies made by endorsed charitable institutions for nominal consideration
25 October 2012
A supply (that is not a supply of accommodation) made by an endorsed charitable institution is GST-free if the supply is for consideration that is less than 75% of the consideration the supplier provided, or...
Living-away-from-home allowance fringe benefit, to 31 March 2014 reasonable amounts
25 October 2012
The Commissioner of Taxation ('the Commissioner') has confirmed what he considers reasonable for food and drink expenses incurred by employees receiving a living-away-from-home allowance ('LAFHA') fringe benefit in the period 1 April 2013 to 31...
Is the payment of general rates imposed by a local government an 'Australian tax' for Division 81 purposes ?
25 October 2012
Yesterday, the ATO confirmed that;
'...the payment of general rates to the entity constitutes the payment of an 'Australian tax', for the purposes of subsection 81-5(1) of the GST Act. As a consequence, the payment is...
URGENT - YOU MAY HAVE SUBSTANTIALLY OVERPAID GST - CAN YOU GET IT BACK?
2 April 2012
On 28 May 2012, the ATO made several amendments to its ruling
GSTR 2006/5
Goods and services tax: meaning of 'Commonwealth, a State or a Territory'
The effect of this is that Local Governments in Australia may...
Goods and services tax treatment of new residential premises
1 December 2011
The government intends to amend the goods and services tax (GST) law to clarify how GST applies to sales of new residential premises to home buyers and investors by builders and developers as of 27...
Living Away From Home Allowance (LAFHA) Changes
30 November 2011
The Australian Treasurer Wayne Swan has announced today that access to the LAFHA tax exemption for temporary residents will be restricted. Temporary residents will now only qualify for the LAFHA tax exemption if they maintain...
Statutory formula reforms for car fringe benefits
11 May 2011
Over the next four years, the existing statutory fractions ranging from 7% to 26% applied when working out the taxable value of a car fringe benefit using the “statutory formula” method will be phased out...
GST – Subsidy payments and input tax credits
29 March 2011
The ATO now takes a broader approach when analysing subsidy arrangements. Specifically, the ATO now accepts that subsidy payments can be consideration for a supply and the entity paying a subsidy may be entitled to...
Are you the victim of Sham contracting?
29 March 2011
Over recent years there have been many new developments in the labour market and a range of new employment models have arisen which can combine some characteristics of independent contracting with more traditional employment conditions....
Car Parking - Virgin Blue Airlines
29 March 2011
You may have been paying FBT on providing car parking spaces unnecessarily.
in this case the Court considered that the application of the meaning of 'vicinity' is ultimately a matter of evaluative judgment, and held that...
GST groups and GST joint ventures
3 July 2010
From 1 July 2010:
• entities can self-assess their eligibility to form and make changes to a GST group or GST joint venture at any time during a tax period
• entities can enter into indirect tax sharing agreements...
Changes to tax invoices
3 July 2010
From 1 July 2010, the amount of information required on tax invoices has been relaxed....
Time limit to claim fuel tax credits
3 July 2010
Time limit to claim
From 1 July 2010, you must claim any outstanding fuel tax credits within four years from the end of the tax period in which you would generally have attributed the fuel tax...
Changes to GST and other indirect tax laws - General interest charge on overpayments
3 July 2010
There have been some changes to GST and other indirect tax law that affect fuel tax credits in a number of ways.
General interest charge on overpayments
On 1 April, a change was made to the law...
Tax law change for overpayments on fuel tax credits
4 June 2010
Amendments recently announced by the Australian Government affect the law on fuel tax credits. These amendments arose from the Board of Taxation review into the administration of the goods and services tax (GST).
Most of...
Exempt Fees and Charges (Division 81) to change – budget
2 June 2010
The GST law will be amended to replace the current mechanism for exempting Australian taxes, fees and charges with a principles-based legislative exemption, with effect from 1 July 2011.
...
Car parking threshold for the fringe benefits tax year commencing on 1 April 2010
2 June 2010
The car parking threshold for the fringe benefits tax (FBT) year commencing on 1 April 2010 is $7.46. This replaces the amount of $7.25 that applied in the previous year commencing 1 April 2009.
...
Operating cost method - repair cost and insurance cover
13 December 2009
You should include any excess payment in operating costs, but not the amounts covered and settled by an insurer.
The actual operating costs (including GST) are those expenses incurred for:
* repairs, but not crash repair expenses...
Grant received from a foreign entity which has an office in Australia
13 December 2009
The supply will be GST-free if the supply is made to the overseas entity. This will be the case even where there is a permanent establishment in Australia as long as the permanent establishment is...
GST on employee contributions - cars and uniforms
13 December 2009
The rules are as follows:
1. The provision of a fringe benefit is a 'supply' for GST purposes;
2. Any payment from after tax salary for the provision of the benefit is 'consideration';
3. Any payment which is...
More options for recipient-created tax invoice agreements
13 December 2009
Recipients affected by the change will have the option of either:
* maintaining separate written agreements specifying the supplies to which each agreement relates, or
* embedding this information...
Movie vouchers – property versus tax exempt body entertainment fringe benefits
13 December 2009
The Tax Office advised that it considered ‘movie tickets’ and ‘vouchers to movie tickets’ as both being capable of constituting the provision of entertainment. The Tax Office noted that ‘movie tickets’ and ‘movie vouchers’ are...
Self Education expenses - what expenses can be claimed (otherwise deductible)
13 December 2009
Expenses you can claim
If you’re eligible, you can claim the following self-education expenses as a tax deduction:
* course and tuition fees (FEE-HELP & OS-HELP)
* textbooks, professional and...
Settlement adjustment and property sales
13 December 2009
Errors are often made when settlement adjustments are not added to the sale price of a property.
If you are registered, or required to be registered for GST, when you sell a property you may receive...
FBT compliance work proves costly for employers
13 December 2009
A recent case at the Administrative
Appeals Tribunal (AAT) meant an
employer had to pay $87,739 plus
penalties and interest.
The case involved a company employer and employee
director. The employer did not lodge a fringe benefits tax
(FBT) return for...
Donations made under salary sacrifice arrangements
13 December 2009
Donations to deductible gift recipients (DGRs) made under salary sacrifice arrangements do not result in an employer incurring an FBT liability from the 2008-09 FBT year.
No FBT applies where the salary sacrifice arrangement involves...
Fringe benefits provided in respect of foreign employment income
13 December 2009
Tax Laws Amendment (2009 Budget Measures No.1) Bill 2009 received royal assent on 29 June 2009 as Tax Laws Amendment (2009 Budget Measures No.1) Act – Act No.62 of 2009.
The bill amends section 23AG of...
HOTEL ROOM HIRE - EXEMPT FOR HOSPITAL AND PBIs
13 December 2009
When an employee incurs expenses in hiring or leasing a private function room or a hotel room those expenses are incurred for the purposes of the provision of entertainment as entertainment is defined in subsection...
Selling vs Leasing Vacant Land/Residential Premises
24 June 2009
You should note that the lease of vacant land will not be treated as an input taxed supply where the land previously contained residential premises. In devoting the land to the purpose...
Exempt Benefits: work related items - primarily for use in the employee's employment
15 October 2008
1. A laptop is an 'eligible work related item'. This is because it is considered to be ' a portable electronic device'.
2. An exemption exists for benefits relating to the provision of certain work related items....
Laptop FBT Changes
14 May 2008
You should be aware that once new amending legislation is enacted, the provision of laptops will not be exempt unless provided primarily for work related purposes.
The amendment will be effective for all laptops acquired after...
Car parking threshold for the fringe benefits tax year commencing on 1 April 2008
12 May 2008
The car parking threshold for the fringe benefits tax (FBT) year commencing on 1 April 2008 is $7.07. This replaces the amount of $6.78 that applied in the previous year commencing 1 April 2007.
...
Amounts mistakenly paid as salary or wages to employees
1 May 2008
Amounts mistakenly paid as salary or wages to employees, (or as income support payments1 or worker's compensation amounts to persons), to which they are not beneficially entitled, but are obliged to repay, are not derived...
FBT ACCESS TO RECREATION CENTRES - EXEMPT BENEFIT
18 April 2008
The ATO has recently released a decision to the effect that a where a local government council provides an employee with the use of the local recreation centre including use of a swimming pool and...
CR 2008/1Fuel tax: vehicle's travel on a public road that is incidental to the vehicle's main use
10 April 2008
New Ruling today
In working out the amount of your fuel tax credit, to the extent that you acquire fuel for use in your enterprise in a vehicle for travelling on a public road, you must...
Benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2008
2 April 2008
The benchmark interest rate for the fringe benefits tax (FBT) year commencing on 1 April 2008 is 9.00 per cent per annum. This rate replaces the rate of 8.05 per cent that has applied for...
2009 cents per kilometre rates
31 March 2008
The rates to be applied where the cents per kilometre basis is used for the fringe benefits tax (FBT) year commencing on 1 April 2008 are:
Engine capacity Rate per kilometre
0 -...
2009 cents per kilometre rates
31 March 2008
The rates to be applied where the cents per kilometre basis is used for the fringe benefits tax (FBT) year commencing on 1 April 2008 are:
Engine capacity Rate per kilometre
0 -...
Minor benefits exemption
31 March 2008
In a recent ruling from the ATO, emphasis has been placed on the need to satisy sevaral requirements in addition to the threshold test before the exemption is available:
1. Infrequency and irregularity with which associated identical...
Reportable Benefits – new rules for the 2008 FBT Year!
31 March 2008
For the FBT year 31 March 2008, the threshold for reportable benefits is $2,000 (grossed-up value = $3,738)....
GST and Art Competitions
11 December 2007
From time to time, Local Governments and other non-profit entities host ‘acquisitive’ art competitions. Some of these competitions attract large numbers of entries and have substantial prize money. The GST treatment of the prize money...
Elected Members and sacrifice arrangements
11 December 2007
The ATO released its much awaited Decision on the effect of elected members purporting to enter into salary sacrifice arrangements.
Amounts paid by a local government council in the form of contributions to a complying superannuation...
FBT – no fringe benefit unless there is an identifiable employee or associate
5 September 2007
The decision of the Full Federal Court in Commissioner of Taxation v. Indooroopilly Children Services (Qld) Pty Ltd [2007] FCAFC 16 found that, for the purposes of determining whether there was a 'fringe benefit', it...
Community care provided by a third party
5 September 2007
The principles set out below apply equally to other community services provided and where you are in receipt of HACC funding.
Where you are in receipt of HACC funding to carry out community care services, it...
Community care provided by a third party
5 September 2007
The principles set out below apply equally to other community services provided and where you are in receipt of HACC funding.
Where you are in receipt of HACC funding to carry out community care services, it...
MEAL ENTERTAINMENT – CAN YOU CLAIM INPUT CREDITS
14 June 2007
Division 69 of the GST Act explains that items of expenditure which are non-deductible under the Income Tax Assessment Act 1997 (ITAA) do not give rise to creditable acquisitions under the GST Act, and relevant...
NEW POOL CAR REPORTING ARRANGEMENTS
18 April 2007
The following commentary provides employers with further insight into the implications of the new reporting requirements where an employer provides cars and which are shared by employees. You should especially note the circumstances where the...
2008 FBT DEVELOPMENTS
18 April 2007
The ATO has begun releasing determinations which will impact on your 2008 FBT compliance activities. It is recommended that you record and implement these changes as and when they are released by the ATO. ...
ATO CIRCULARISING GRANTS QUESTIONAIRE
6 December 2006
Please note that some Councils have been circularised by the ATO with a questionaire relating to the GST treatment of their grant funding. If you are in receipt of this, please contact the Tax Service...
NEW APPROPRIATIONS RULING
6 December 2006
All recipients or providers of funds should be aware that the ATO has released its third public ruling on the GST treatment of payments in the form of appropriations. Please contact us or your advisers...
WEIGHT WATCHERS PROGRAMMES MAY BE EXEMPT FROM FBT
9 August 2006
The ATO has recently indicated that the provision of weight watcher programmes may be exempt from FBT in certain circumstances.
Weight Watchers is in the business of providing counselling services to the general public with respect...
EXEMPT RELOCATION - EXPENSES OF SELLING A HOME
9 August 2006
If certain conditions are satisfied, the payment by an employer on behalf of an employee who is relocating to a new location for work purposes and which relate to a house sale will be exempt.
There...
GST DIVISION 81 FEES AND CHARGES ARE NOT GST-FREE
11 May 2006
For BAS purposes and generally for GST purposes, entities are required to determine into which of FOUR GST categories, a GST transaction falls. These four categories are:
Taxable;
GST-free;
Input taxed;
Outside the scope of GST.
Supplies falling into GST-free...
FBT CAR EXPENSES UP TO $200 DO NOT HAVE TO BE SUBSTANTIATED
11 May 2006
The Tax Office confirmed that car cleaning costs would be covered by the definition of documentary evidence in Section 136(1) of the FBTAA to allow the $10/$200 concession in section 9(2)(e)(ii(B) of the FBTAA.
The following...
Claiming input credits for mobile phones provided as fringe benefits
22 February 2006
In an FBT/GST ALERT issued earlier this month, we brought your attention to a letter being circulated by a telephone provider containing information to the effect that employers were NOT entitled to claim input credits...
GST - Interest on Investments
22 February 2006
In the past week we have received a number of questions about recent ATO activity in this area. As a result of ATO questionnaires about the BAS treatment of interest on investments, the ATO has...
GST-Free land sales - The meaning of 'improvements on the land'
7 October 2005
There have been numerous cases, several at the High Court of Australia, addressing the meaning of 'improvements thereon or appertaining to' or similar expressions in the context of land tax and rating statutes.2 Each has...
Real property - Consideration for the supply and settlement adjustments
5 October 2005
The consideration for the supply and the consideration for the acquisition may be either monetary or non-monetary or both. The consideration for the supply or acquisition will not always be the price shown on the...
EXCESS EMPLOYEE CONTRIBUTIONS - FBT
1 August 2005
If an employee makes contributions to an employer from after-tax salary income, that are in excess of the recipient's payment required to reduce the taxable value of a car fringe benefit to nil those excess...
WITHHOLDING FROM SUPPLIER PAYMENTS - THE PROCEDURES
25 July 2005
The following paragraphs outline the process that needs to be followed where Council has withheld an amount from a supplier payment.
When you pay the remaining 51.5 per cent, you should give the supplier an...
DONATIONS - WHEN IS A BENEFIT 'MATERIAL'
21 July 2005
The question of whether a payment (cash or otherwise) provides a material benefit to the donor is important for GST and income tax purposes.
A donation can never be consideration for GST purposes if it...
HOW THE ABOLITION OF SUPER SURCHARGE MAY AFFECT SALARY PACKAGING
4 July 2005
Now that the Government have control over both houses, it is almost guaranteed that the superannuation surcharge will be abolished with effect from 1 July 2005. It is important that all employers and employees are...
GST and long-term non-reviewable contracts
16 June 2005
As 1 July 2005 approaches, we are becoming aware of many suppliers who have not applied their minds to the implications of the new legislation. We urge readers to scrutinise their existing contracts and determine...
Tax invoices what constitutes a valid name?
16 June 2005
A common experience of many entities is that they receive supplier documents from that purport to be tax invoices, but where the name of Council on the document is not Councils full name or legal...
Sale of vacant residential land
16 June 2005
The sale of vacant land can NEVER be an input taxed supply. The reason for this common error is the belief that if land is zoned residential and/or purchased to build houses thereon, it is...
GST-FREE SALE OF FARMLAND
18 May 2005
Some of our readers involve themselves in the supply or acquisition of farmland even though they are not in the business of farming themselves. The recently released ID 2005/103 provides authority for the view that...
ADJUSTMENTS FOR BAD DEBTS - CHANGED PROVISIONS
18 May 2005
The Commissioner has released an addendum setting out some important changes to GSTR 2002/2. GSTR 2002/2 provides the ATO's interpretation of the law as it relates to the periods in which adjustments for bad debts...
FBT - VOUCHERS TO EMPLOYEES - EXEMPT?
18 May 2005
In ID 2005/109, the ATO sets out its view that an exemption under section 41 of the FBT Act is not available where vouchers are provided to employees. Although the specific facts of this case...
CHARITABLE INSTITUTIONS AND CHARITABLE FUNDS
18 May 2005
In TR 2005/D6, the Commissioner sets out his views on which entities and organisations qualify as charitable institutions and which organisations qualify as funds established for a charitable purpose. The release of this draft ruling...
CLAIMING HOME OFFICE EXPENSES- ATO PRACTICE
18 May 2005
In May 2005, the ATO released a Practice Statement in which it sets out the ATO's attitude towards the claiming of deductions by taxpayers for home office and related expenditure. This has great relevance to...
EXEMPT LAPTOPS - DEPRECIATION AND INCOME TAX
28 January 2005
An employee is reimbursed for the purchase of a lap top computer. The employee proposes to use the lap top predominantly for business purposes and as per TD 93/145 they can claim depreciation on the...
GST/FBT - MEALS PROVIDED AT NO COST TO EMPLOYEES
27 January 2005
This article based on a recent ATO ID explains why there is no GST payable on the supply of meals to an employee and where the employee provides services for these meals.
The principles are...
LEASEBACK RESIDENCE TO EMPLOYER - HOSUING/DEDUCTION
27 January 2005
It has become practice in some employment relationships for schemes to be entered into that aim to allow employees to claim income tax deductions for mortgage interest on private residences.
Under this type of arrangement, an...
Car fringe benefits: 1/3 reduction in the base value of a car under the statutory formula method
14 November 2004
Subsection 9(1) of the FBTAA sets out the formula for calculating the taxable value for one or more car fringe benefits for a particular car held by the employer, where the employer uses the statutory...
5 YEAR OLD CONTRACTS NEED URGENT ATTENTION
2 November 2004
GST exemption for long term contracts to end on 1 July 2005.
TaxEd Plus Members are urged to contact all business and departmental units and ask for details of any long term contracts that fit the...
GST CONCESSIONS FOR RETIREMENT VILLAGES TO BE PROTECTED
16 September 2004
The Government has indicated that it will legislate some minor amendments to the New Tax System to remove public uncertainty in relation to the GST treatment of retirement villages.
Today, a government official confirmed that the...
SGR 2004/D1 - Superannuation guarantee: who is an employee?
26 August 2004
This draft ruling explains how employers should determine which individuals are employees for the purposes of their superannuation obligations.
Under subsection 12(1) of the SGAA, if a person is an employee at common law, that person...
NEW ENDORSEMENT REQUIREMENTS FOR CHARITIES
2 August 2004
From 1 July 2005 new endorsement arrangements for charities begin. Charities will need to be endorsed by the Tax Office in order to access income tax, fringe benefits tax (FBT) and goods and service tax...
Deductions for transport between workplaces
14 July 2004
A recently introduced provision in the legislation provides a specific deduction for transport expenses incurred in travelling between workplaces. This provision applies retrospectively from 1 July 2001.
It is important to note that while travel to...
HOUSING BENEFITS -NEW RULING - TD 2004/26
8 July 2004
In order to be deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), a loss or outgoing must be incurred in gaining or producing your assessable income or in carrying on...
ALERT - EMPLOYER'S RESONSIBILITY FOR EXEMPT VEHICLES
20 June 2004
It is important that you as an employer are aware of your obligation to ensure that 'exempt' vehicles are used for the prescribed limited purposes only. We are aware of many State and Local Government...