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Call: 02 8079 2924

Month: August 2012

The Living-Away-From-Home (LAFH) Allowances and Benefits amendments were passed in the House of Representatives yesterday afternoon.

The final Bill included Government amendments (in effect, schedule 1 as originally introduced on 28 June, was omitted and substitiuted with an amended schedule 1).

The amended Bill results in LAFH allowances being taxed entirely within the FBT system.

The start date for the measure remains the same, and the changes generally take effect from 1 October 2012.

Below is a link to the Assistant Treasurer’s press release relating to passage of the measure: http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2012/088.htm&pageID=003&min=djba&Year=&DocType=

The Bill and EM can be found via the following link:

FBT Essentials Update: LAFHA changes + Salary Packaging Update – early bird pricing $250 + GST. Register by 31 August

Training to be provided, download registration form here:


Our 3 hour FBT Essentials Update seminar will cover what you need to know about the important LAFHA changes and the Relocation rules. We will also cover common FBT return mistakes, recent and planned ATO Audit activity and an update on the latest Salary Packaging ideas and trends.

Our 3 hour FBT Essentials Update 2012 is designed to cover what you need to know in relation to the important LAFHA changes, outline the opportunities with the FBT Relocation exemptions & discuss the latest in Salary Packaging. The best $250 you could spend on training this year – register by 31 August.

What we will cover:

  • Understand the LAFHA changes from 1 October 2012 for employers & employees
  • The new emphasis on Relocations
  • The latest on Salary Packaging
  • Common FBT mistakes you can avoid
  • Entertainment – the everyday tricks, traps and valuation issues
  • ATO audit focus areas including cars, travel, in-house benefits, exempt benefits and more

Who should attend:

Anybody involved with managing or administering FBT, employee contracts or employee expenses should attend. This will include those in Finance or Tax roles and Human Resources & Payroll personnel.


Sydney Hilton – Wednesday 12 September

Melbourne Hilton on the Park – Wednesday 19 September

Brisbane Hilton – Tuesday 9 October

Sydney Hilton – Tuesday 16 October

Register at www.fbtseminars.com.au or call us on 02 8079 2924

With businesses beginning the LAFHA transition process, the Office of State Revenues will be looking forward to some increased revenue.

Many LAFHA amounts will convert to Salary & Wages at 1 October 2012, and therefore PRT will apply.

Reimbursed LAFH benefits in most situations will become taxable fringe benefits, and PRT will apply to the grossed up amount – the PRT impact not be fully felt until June 2013 – but employers will need to be aware of the additional liability.

The additional liability will vary from State to State and LAFHA to LAFHA but as an example, an annual LAFHA of $60,000 will attract PRT of $3,270. That amount will balloon to over $6,000 if the LAFHA is grossed up for PAYG purposes. These additional PRT liabilities are significant.

Liabilities on Workers Compensation insurance will also increase.