Managing Employee Expenses, Entertainment & Allowances Seminars – coming soon to Brisbane, Melbourne & Sydney
We delivered our first series of seminars this week!
Through the complexity I think we were able to provide some clarity and guidance.
Must attend training for accounts payable teams, finance managers and company accountants.
Register online: http://www.cvent.com/d/bcqz6n
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.
We are seeing a marked increase in relocation domestically and out of Australia as the LAFHA changes start to bite.
Whilst the changes (and we still don’t know the final detail) aren’t due to commence until 1 October 2012, already employers are negotiating with employees or advising employees of their options.
New Zealand temporary visa holder – TD 2012/18
The ATO have issued Taxation Determination TD 2012/18 entitled “Income tax: does a New Zealand citizen who was present in Australia as the holder of a temporary visa granted under section 32 of the Migration Act 1958 (a Special Category Visa) that ceased to be in effect when they departed Australia, still hold a temporary visa for the purposes of paragraph (a) in the ‘temporary resident’ definition in s 995-1(1) of the Income Tax Assessment Act 1997?”
If a New Zealand citizen who was present in Australia as the holder of a Special Category Visa departs Australia, they will still ‘hold a temporary visa’ for the purposes of paragraph (a) in the ‘temporary resident’ definition in subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997).
Although a Special Category Visa is a visa to remain in, but not re-enter, Australia, and therefore ceases to be in effect if the holder leaves Australia, a New Zealand citizen with a New Zealand passport has an ongoing right to re-enter Australia on another Special Category Visa. As such, the New Zealand citizen will be treated as holding a temporary visa granted under the Migration Act 1958 (the Migration Act) for the purposes of paragraph (a) of the ‘temporary resident’ definition in subsection 995-1(1) of the ITAA 1997, provided that they continue to be entitled to re-enter Australia on presentation of their New Zealand passport.