FBT Solutions

02 8079 2924

Exempt Cars

2013 Salary Packaging Essentials seminars

We are running our popular Salary Packaging seminars in August & October as follows:

Sydney – Wednesday 14 August, 9am – 12.30pm, register here: http://tinyurl.com/ahzgehb

Brisbane – Tuesday 20 August, 9am – 12.30pm, register here: http://tinyurl.com/ahzgehb

Melbourne – Wednesday 9 October, 1.30pm – 5pm, register here: http://tinyurl.com/ahzgehb

Sydney – Wednesday 16 October, 1.30pm – 5pm, register here: http://tinyurl.com/ahzgehb

Some key salary packaging seminar highlights:

• Maximising the tax benefits from the family car

• Accessing the concessional FBT car parking rules without being locked in to a lease

• Understanding the significant tax savings when permanently relocating

• Strategies for cars that work

• Maximising the concession and exemptions

• Driving your policies to maximise employer & employee benefits

What you’ll get:

• Free access to our salary packaging calculator tool

• Our detailed salary packaging workbook with examples

• Free follow up query service • A full set of seminar notes

Who should attend?

If you’re responsible for salary packaging in your organisation, or just want to find out more about how it all works, then this seminar is a must attend. Whether you work in a non profit organisation, government or corporate entity (big or small), salary packaging will benefit your employees and your employer. Attendees include Payroll Managers and Staff, HR Managers and their teams, Finance personnel (accountants and AP staff) and Tax personnel. Register here: http://tinyurl.com/ahzgehb


Learn the compelling reasons for Salary Packaging at our half day Salary Packaging seminars in May & June. Understand the significant tax and other savings for both the employee and their employer, how to structure your salary packaging to be fully tax compliant with the correct policy and documentation requirements.

When and where are the seminars:

Sydney – Wednesday 29 May, register here:  http://tinyurl.com/ahzgehb
Melbourne – Wednesday 12 June, register here:  http://tinyurl.com/ahzgehb
Brisbane – Wednesday 19 June, register here:  http://tinyurl.com/ahzgehb

What we’ll cover:

• The new ATO view when salary packaging a laptop / Ipad / smartphone

• Salary packaging the family car to save thousands of dollars with no additional outlay

• Accessing the concessional FBT car parking rules for those working part-time or only requiring parking a few days a week, without being locked in to an annual lease

• Strategies for cars that work

• The new ATO requirements for car logbooks

• Understanding how to save thousands of dollars when relocating

• Maximising the concession and exemptions, whilst being fully compliant

• Adding up all the FBT, Payroll Tax, Work Cover and Superannuation savings

• Driving your policies to maximise employer & employee benefits

What you’ll get:
• Free access to our salary packaging calculator tool

• Our detailed salary packaging workbook with examples

• Free follow up query service

• A full set of seminar notes

What’s your investment:
• $330 including GST for new attendees

• Only $275 including GST for past attendees (and their colleagues)

• A CPD certificate will be provided

Who should attend?
If you’re responsible for salary packaging in your organisation, or just want to find out more about how it all works, then this seminar is a must attend.

Whether you work in a non profit organisation, government or corporate entity (big or small), salary packaging will benefit your employees and your employer.

Attendees include Payroll Managers and Staff, HR Managers and their teams, Finance personnel (accountants and AP staff) and Tax personnel.

Register here:  http://tinyurl.com/ahzgehb


Our 2013 Salary Packaging Essentials seminars are a must attend for HR, Finance, Tax & Payroll personnel.

Presented by Paul Mather of FBT, Payroll & Salary Packaging Solutions our half day seminars will help you understand what ‘s good and what’s great in the world of salary packaging.

Register here: http://www.cvent.com/events/salary-packaging-seminar/event-summary-405ffe4e927d4f47b2a8dac2a3c025cb.aspx

For commonly salary packaged fringe benefits, go to:http://www.fbtsurvival.com.au/common-salary-packaged-benefits/  or go direct to www.salaryguru.com.au

For more information, contact us at info@fbtsolutions.com.au or by phone on 02 8079 2924.

 


2013 FBT Update Seminar – LAFHA changes, ATO focus & Salary Packaging

Our 2013 FBT Update Seminar Series covered the important LAFHA changes, changes in Car rules and the tricks & traps in identifying and valuing car parking fringe benefits.

In addition we covered the broad range of Salary Packaging offerings to the full extent of the FBT law.

Download a copy of the FBT Update Seminar slides here:

http://www.fbtsurvival.com.au/wp-content/uploads/2013/02/2013-FBT-Update-Seminar.pdf

For more important FBT material, go to www.fbtsurvival.com.au

If you have any questions on the topics covered, please email us at info@fbtsolutions.com.au or call us on 02 8079 2924.


Cars in transition and under attention

Cars usually represent the biggest risk area for employers. With a continuing and elevated level of attention from the ATO, management of cars from a FBT perspective must always be a priority.

Car reform & transition

Whilst the car reforms commenced back on 10 May 2011, we mustn’t lose sight of the transitional rules and these will require continued monitoring through until 1 April 2014 when the flat rate of 20% applies. Therefore, only two FBT return periods (2013 & 2014) remain where employers (and employees) will need to worry about such things as odometer readings and annualising of kilometres when valuing the car benefit using the statutory formula method (SFM).

Cars provided prior to 10 May 2011, or where a pre-existing commitment was in place to prior to that date, will continue to use the old statutory fractions unless there has been a change in commitment. Changes made after 10 May 2011 to commitments existing prior to 10 May 2011, such as re-financing a car, altering the duration of an existing contract or changing employers, are new commitments and will therefore be subject to the new arrangements. Under the transitional rules, if the amendments (new commitments) do not apply at the start of an FBT year (or from the time the car was first held if that happens after the beginning of the FBT year), the amendments will instead begin to apply from the start of the next FBT year as follows:

 

Thresholds

 

Old   rates

New   rates after 10 May 2011

 

2012

2012

2013

2014

2015

0 – 15,000 kms

26%

20%

20%

20%

20%

15,000 – 25,000 kms

20%

20%

20%

20%

20%

25,000 – 40,000 kms

11%

14%

17%

20%

20%

More than 40,000 kms

7%

10%

13%

17%

20%

Therefore, the key point is that whilst a car may be subject to the new rates, the application of the new rate may not occur until the first day of the next FBT year. This requires the 2013 FBT return preparers to flag these changes for the 2014 FBT return. And hopefully, this requirement has been flagged by the 2012 FBT return preparer for the 2013 FBT return. Use of annual rotation of the FBT return preparer can often lead to confusion.

When preparing your 2013 FBT return, the choice of rates will depend upon whether the old grandfathered rates continue to apply as a pre 10 May 2011 contract or if the car is included in the new transitional rates. The table below illustrates:

Thresholds

Grandfathered Rates

Transitional Rates

0 – 15,000 kms

26%

20%

15,000 – 25,000 kms

20%

20%

25,000 – 40,000 kms

11%

17%

More than 40,000 kms

7%

13%

ATO focus

Cars are the single largest FBT revenue item for the Government (although LAFHA may well challenge for the title in 2013!). As mentioned, cars remain a major ATO focus. The ATO are targeting cars on a number of fronts….

Luxury cars and use of logbook

The ATO have focussed closely on the use of log books in general but particularly in respect of luxury vehicles, especially high end luxury sports cars.

Exempt cars

The ATO have undertaken a campaign targeting employers who have claimed exemption for vehicles and are not lodging FBT returns. There exists a general lack of understanding on the application of car exemptions and often this is due initially to lack of clear policy and then poor compliance procedures. It is an area that requires careful management as cars are highly visible benefits and their related costs run clearly through the financials.

Employee contributions project

ATO analysis has identified that a high percentage of employers who report employee contributions in their FBT returns with the effect of reducing the taxable value of benefits, are failing to report those employee contributions as assessable amounts in their income tax returns and related GST liabilities in the periodic BAS.

The ATO has been issuing letters to employers where the ATO has identified discrepancies between Income Tax Returns and FBT Returns. The ATO are reminding employers of their responsibilities with contributions and that they must be reported as income in the correct label on the income tax return. If the employer has not reported the income then an amended return will be necessary.


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