As you may recall, as part of the 2020-21 Federal Budget, the Morrison government released a generous tax incentive to help stimulate the Australian Economy due to the onset of COVID-19. The Temporary Full Expensing stimulus measure, allowed businesses with an aggregated turnover of less than $5 Billion to access an instant deduction for
Even though Fringe Benefits Tax (FBT) is designed to capture benefits enjoyed by an employee, it is levied on the employer. Unless your employment agreement allows for any FBT that becomes payable to be recouped from the employee, the employer will have no recourse for reimbursement. So, why should an employer lodge an FBT
Many employers are unknowingly falling foul of the FBT regime through an incorrect interpretation of the minor and infrequent exemption allowed for benefits that cost less than $300. The most prevalent area where employers find themselves in trouble when applying the minor and infrequent exemption is in relation to the provision of ‘Meal Entertainment’.
A car fringe benefit commonly arises when an employer makes a car they own or lease available for the private use of an employee. If you conduct your business through a company or trust, you may be an employee of the company or a trust. A car is made available for private use by
An everyday occurrence across the business landscape in Australia is the practice of taking both existing and potential clients out for a meal to cement the business relationship, with the cost of this meal often covered by one party. Equally, business owners commonly reward by taking high performing employees out for lunch and covering the
RATs are now tax deductible! And no FBT. As we move into living with COVID as the new norm, the Federal Government have finally caught up with the fact that PCR and rapid antigen tests (RATs) for COVID are becoming an everyday cost for individuals and employers. The Government have announced a policy change
Are you providing COVID-19 related benefits to employees? Business owners providing benefits in addition to salary or wages because of COVID-19 need to check if fringe benefits tax could apply. Although you may be providing various benefits to create a safe workplace and support employees, you may be inadvertently liable for fringe benefits tax.
“You better watch out, you better not cry! You better not pout, I’m telling you why…” Christmas is just around the corner and I’m sure many businesses will be looking to celebrate with their teams, especially after the crazy year we have all had. The tax outcomes for client gifts, employee gifts and Christmas