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Debt Waiver

2015 FBT Return Seminars

Preparing Your 2015 Fringe Benefits Tax Return seminars  http://tinyurl.com/lpr8sgt

Who should attend?

These full day FBT seminars are designed for people who are responsible for the preparation or review of the FBT return.

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2013 FBT Return Preparation Seminars – Melbourne, Sydney & Brisbane & some key areas to start thinking about

With an unprecedented number of law changes and increased ATO focus, attending one of our 2013 FBT return preparation seminars is an absolute must do. Our 2013 FBT return preparation seminars will be practical and cover the important law changes for LAFHA, Relocations, Cars, Airline Transport Benefits and In-house Benefits, and how these will impact on your 2013 FBT returns.
We will work through the identification and valuation of all benefit categories, and explain what information and documentation is required to claim an exemption, concession or a reduction.
We are holding three full day FBT return preparation seminars in March 2013. Spaces are limited to maximise learning. The dates, locations and registration links are as follows:
Melbourne, Thursday 14 March – Register online here: http://www.cvent.com/d/dcqx6v/1Q
Sydney, Wednesday 20 March – Register online here: http://www.cvent.com/d/dcqx6v/1Q
Brisbane, Wednesday 27 March – Register online here: http://www.cvent.com/d/dcqx6v/1Q
Alternatively, download and print out the registration form here: http://www.fbtsolutions.com.au/pdf/fbt_return2013_seminar.pdf
Early bird – register by 25 January and you only pay $550 including GST.
On time bird – after 25 January, you pay $660 including GST.
Loyal bird – if you or one of your colleagues has previously attended any of our seminars, reduce the applicable fee for each attendee by $55 – that’s our way of saying thank you for your loyalty.

CPD / CPE Hours – 6.5 hours, a certificate in your name will be provided.

Key areas for 2013 FBT Returns
Here are some of the key areas to consider when planning your 2013 FBT return preparation process:

  1. Planning – start the process early, think about the prior year issues and business changes
  2. Prepare a list of updated key contacts – internal and external, and confirm availability
  3. Prepare a timetable of key dates, resources and responsibilities
  4. Law changes – consider the key law changes to LAFHA, relocations, airline transport benefits, cars and in-house benefits. We’ll cover these in detail at the seminars
  5. Car parking – understand where the benefits are being provided, the duration and source the lowest daily rates www.fbtme.com.au – our pricing is competitive, we’ll beat any written quote by 15%.
  6. Training – unless you focus on FBT all year round, then it is recommended that you attend a training session – register here for our full day FBT return preparation seminar: http://www.fbtsolutions.com.au/pdf/fbt_return2013_seminar.pdf or http://www.cvent.com/d/dcqx6v/1Q
  7. LAFHA – understand who received LAFHA, the start and end dates, the food and accommodation components and who was eligible for the transition
  8. LAFHA – for those employees who are eigible for the transition, check that the accommodation allowance is equal to or less than the actual renatl expense
  9. LAFHA – issue declarations now for those who’s LAFHA ended on 30 September 2012. Let me know if you require a template declaration.
  10. Relocations – pull together a list of employees who relocated, either temporarily or permanently and start understanding the circumstances of their relocation and the    remuneration or reimbursement arrangements
  11. New benefits – were new benefit offerings made in 2012 /13?
  12. Cars – start early to understand the cars outside the SFM transitional rules and ensure logbooks are on file and compliant.
  13. Were there any big parties? Start gathering the detailed costings and understanding the nature of the event/s.

Talk to us about your FBT needs. If you have a query, please let us know.

Yours in FBT,

Paul Mather
Director & Registered Tax Agent
FBT, Payroll & Salary Packaging Solutions
T: 02 8079 2924 F: 02 8249 8101 M: 0403 050 358
E: paul.mather@fbtsolutions.com.au
W: www.fbtsolutions.com.au
A: Level 12, 95 Pitt Street, Sydney NSW 2000
P: PO Box 4508, Sydney NSW 2001

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

Here are some benefits we have uncovered in our FBT return review work:

  1. Long service awards – it’s not just the excess over the threshold that’s taxable, it’s the lot
  2. 2011 Rugby World Cup costs (and keep an eye on costs for the 2012 Olympics) – accommodation, airfares, taxis, meals, match tickets, sightseeing tours etc
  3. Permanent residency application costs
  4. Permanent residency consulting fees
  5. University fees
  6. Waiving of employee termination recoveries (Relocation costs, PR application costs, Study costs)
  7. Car parking – not identifying all benefits
  8. Car parking – not performing a survey www.fbtme.com.au

And remember, it’s not what’s in the FBT return that’s the issue, it’s what’s not in the FBT return that is the issue

FBT States and Territories Industry Partnership minutes –  14 March 2012

A very interesting and relevant issue for employers, discussed at the above ATO FBT States and Territories Industry Partnership meeting….

11.6 Salary packaging shortfall

Clarification is sought of the ATO response provided to agenda item 5.6 of the FBT STIP meeting held on 25 October 2011. This item which concerned an invoice raised by an employer that was seeking to recover its salary packaging costs from the employee covers a complex issue for on-going management of salary packaging arrangements, especially where there is an outsourced benefit provider.

In most government salary sacrifice arrangements, the employer is required to pass on all administrative and FBT costs to the participant, on the basis that entering into these arrangements must be cost-neutral to the Government agency.

When establishing a package the various elements have a character of estimates, because the final FBT liability cannot be established with certainty until the final calculations are made. There are quite a number of variables which affect the resulting liability, most recent being the change to the statutory formula rates.  More traditionally, for some packages, the employer is able to calculate a car fringe benefit under both available methods and ‘elect’ the lower cost method for the FBT return.

In addition, the employee may choose to make an employee contribution against the projected taxable value of the benefit.  If the contribution does not fully cover the taxable value, there will be an FBT liability, commonly termed a shortfall.  Because this amount is only fully known past the end of the FBT accounting period, management of the recovery of shortfalls presents a number of options that may need to be confirmed by the ATO.

The agenda item covers one STIP member’s interpretation of recovery action. However, it is important to note that technically the FBT liability is an amount due by the employer, not the employee and cannot be deemed to be reimbursement of an obligation of the employee. If the package results in a shortfall, one ATO officer has suggested to me that it is technically an overpayment of salary and wages.  In most government agency situations, it is not possible to waive the shortfall.  Therefore a reference to TD 2008/11 is questioned.


Is it feasible to create an obligation by issuing an invoice?  What is the GST status?

There is a need for a pragmatic process for managing salary packaging shortfalls. There is also a need for clarity about recovery of this amount from the employee. Should it be from pre-tax or post-tax salary?

In the case of overpaid salary and wages, the employee is required to repay the gross and reclaim overpaid tax from their personal return.

There has been some administrative view that the employee should be able to make an employee contribution out of post-tax salary after 1 April in the relevant year, and contribute it to the employer prior to finalising the employee’s payment summary.

The ATO response to agenda item 5.6 seems to stop short.  Please provide more assistance in managing this difficult issue that is both practical and workable as well as not giving rise to further fringe benefits that were never intended.

ATO response

The response to agenda item 5.6 of the FBT STIP meeting held on 25 October 2011 was given in relation to a particular factual situation that was raised by a member who was concerned that a fringe benefit had been created by the arrangement that had been entered into by an agency.

In the particular arrangement that was raised for discussion, the employer had issued an invoice to an employee who wanted to arrange for the amount of the invoice to be included in a salary sacrifice arrangement.

The ATO in response to the agenda item advised that a fringe benefit would arise from the arrangement as it involved the employer either waiving the debt shown on the invoice, or reimbursing the amount paid by the employee.

Although a fringe benefit arose from the particular arrangement discussed at the October FBT STIP, this does not mean that an additional fringe benefit will arise when ever there is a salary packaging shortfall.

There are a variety of arrangements that can apply when a salary packaging shortfall occurs. The decision as to which arrangement is to apply is a matter for the employer and employee to decide.

Members who wish to obtain advice about the taxation implications of a particular arrangement should apply for a private binding ruling in which all of the factual circumstances can be considered in detail.

If the above is a concern, let us help you at our upcoming training on Understanding Salary Packaging: