FBT Solutions

02 8079 2924

Month: April 2012

We have been busy preparing Car Parking FBT reports for our clients and already delivered significant FBT savings for our clients.

Savings on average have been in the 15% – 30% range.

These savings far outweigh our fixed fee rates.

These are direct savings for our employer clients, and savings to pass on to employees who salary package a car park.

If only we could work on a contingency basis!

Drive your computer straight to www.FBTme.com.au or contact us on 02 8079 2924

 

 

 

 


Car Parking FAQ

Q. We didn’t pay FBT on our car parking last year, do we need to worry?

A. A proper review and survey is required to determine if a FBT liability exists. Even if last year’s treatment is correct, this year may be a completely different story. Therefore, a proper review and survey is recommended each year.

Q. Is it true that shopping centre car parks, hospital car parks and special event car parks should be ignored when considering FBT?

A. YES and NO.

Often these types of car parking facilities do not fall within the definition of a commercial parking station, however it pays to check, and you should never assume FBT is not payable.

Importantly, you need to be careful if you provide parking to your employees within one of these facilities, as FBT is likely to apply.

Q. How do we measure the 1 kilometre radius?

A. The measurement is based on the shortest practical route from the entrance of the employer provided car park and the entrance to the commercial parking station. Therefore, a proper survey is required to determine an accurate measurement. Often this requires more than one measurement.

Q. We don’t know who parks in what spaces, how often and for how long?

A. Potentially you could be paying too much or too little FBT. A review will help to determine the correct amount of FBT payable, and more importantly, will identify available savings.

Q. My accountant reviews our annual FBT return, therefore the FBT liability should be correct?

A. It will depend on the scope of the review and whether your accountant has reviewed the car parking data and calculations in detail.


iPads and FBT

The FBT law allows for an exemption for Portable Electronic Devices, including iPads.

In order to claim exemption the iPad must be used primarily for business purposes.

What do you think would be a business purpose when using an iPad?

 


 

  1. Is the base value of a car limited to the luxury car limit?
  2. What is the base value of a car where a novated lease is transferred between two unrelated employers?
  3. What is the base value of a car where a novated lease is transferred between two related employers?
  4. Should the number of kilometres be annualised where the car is held for the full FBT year, but was not available for private use for 6 weeks during the year?
  5. Does FBT apply if the car lease is in the name of the employee?

We had a light lunch yesterday with a client. A couple of salads, bread, soft drinks and coffee. A nice cafe just across the road from the office.
We talked predominately about work including the effect of the LAFHA & SFM changes. We considered getting a bottle of wine but decided to catch up for a drink another time after work when we could relax.
The FBT law determines that the light lunch is meal entertainment. We consumed the meal offsite and we were not travelling. Even though we consumed no alcohol and talked about work matters, the entertainment FBT rules will apply.


Would you like to know how affordable FBT Outsourcing is?

Please complete the form

TO FIND OUT

How many employing entities do you have in Australia? (i.e. how many Australian FBT returns do you lodge?)

Are your FBT returns reviewed externally prior to lodgement?

Do you currently use FBT software to prepare your FBT return/s?

How many employing entities do you have in New Zealand? (i.e. how many New Zealand FBT returns do you lodge?)

GREAT!

We will send you a fee estimate via email (within 72 hours).