FBT Solutions

02 8079 2924

Month: October 2012

Planning is well under way for our 2013 FBT Return Seminars. Register here:  http://www.fbtsolutions.com.au/pdf/fbt_return2013_seminar.pdf

The 2013 FBT returns will be a big challenge for those providing LAFHA. There will be many transitional issues to analyse and relocation costs to understand.

Day Date Time Topic City Early Bird Price – Register by Friday 25 January 2013 After 25 January 2013
Thursday 14-Mar-13 8.45am – 4.45pm Preparing Your 2013 FBT Return Melbourne $550 $660
Wednesday 20-Mar-13 8.45am – 4.45pm Preparing Your 2013 FBT Return Sydney $550 $660
Wednesday 27-Mar-13 8.45am – 4.45pm Preparing Your 2013 FBT Return Brisbane $550 $660

Register here: http://www.fbtsolutions.com.au/pdf/fbt_return2013_seminar.pdf

Further details:paul.mather@fbtsolutions.com.au


Sydney, Wednesday 17 October from 9am – 1pm…  http://www.cvent.com/d/bcqz6n

Ten things you’ll learn at our Managing Employee Expenses, Entertainment & Allowances seminar:

  1. The tax distinction between onsite and offsite entertainment
  2. How to structure your GL account codes for food & drink, entertainment and travel expenses
  3. When drinking alcohol does not constitute entertainment
  4. The importance of understanding the participants role and business relationship
  5. Applying the minor benefit exemption rule
  6. Managing expenses in a foreign currency
  7. Best practice for credit card statements and payments
  8. The limited situations that travel diaries are required
  9. ATO focus areas on employees and contractors
  10. Maximising the ATO reasonable amounts whilst minimising documentation requirements

And a whole lot more …. Register online: http://www.cvent.com/d/bcqz6n


Draft Taxation Determination

TD 2012/D8
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 period from 1 April 2013 to 31 March 2014

For the period from 1 October 2012 to 31 March 2013, the ATO have confirmed that the rates set in TD 2012/5 will apply.

Ruling

1. This draft Determination sets out the amounts that the Commissioner of Taxation (‘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 allowance (‘LAFHA’) fringe benefit in the period 1 April 2013 to 31 March 2014. In addition, a transitional arrangement for the period ending on 31 March 2013 is set out at paragraph 19.

2. Where the total of food and drink expenses for eligible family members (including an employee) incurred by an employee in a period (up to a maximum of 12 months)1 does not exceed the amount the Commissioner considers reasonable, those expenses do not have to be substantiated under section 31G of the FBTAA. Where an employee receives a LAFHA fringe benefit, for the employer to reduce the taxable value of the fringe benefit by the exempt food component, the expenses must be either:

  • equal to or less than the amount the Commissioner considers reasonable under paragraph 31G(1)(b), or
  • substantiated in accordance with the requirements in subsection 31G(2).

3. If the total of an employee’s food or drink expenses in the period exceeds the amount the Commissioner considers reasonable, the exempt food component is so much of the food and drink expenses (less the applicable statutory food total) as are substantiated by the employee.


The ATO is looking closely at FBT on cars. It is conducting a campaign to make sure employers who have purchased a car recently are aware of their FBT obligations.

Data obtained by the ATO from various motor vehicle registering bodies has helped it identify employers who have purchased a business registered vehicle but have not registered for FBT. The ATO says it is writing to about 5,000 employers who fall into this category, to tell them about car fringe benefits and what they need to do to comply with FBT obligations.

The ATO is particularly highlighting that:

  • if a car is garaged at home, it is available for private use;
  • as a general rule, travel to and from work is private use of a vehicle;
  • there are only very limited circumstances where an employee’s private use of a car is exempt from FBT.

Would you like to know how affordable FBT Outsourcing is?

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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?)

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