Drinking a bottle of wine at the local restaurant may result in FBT,
Drinking a bottle of wine whilst travelling overnight should not result in FBT,
Giving your hardworking staff a bottle of wine to take home should not result in FBT (if under $300 incl. GST),
Drinking a bottle of wine on your business premises may result in FBT.
I think I need a drink!
These LAFHA changes take another sharp turn…
The amended Bill results in LAFH allowances being taxed entirely within the FBT system.
Whilst to a large degree this doesn’t change the substance of the changes (or effect on employees / employers) it does provide some opportunities.
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.