FBT Solutions

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Remote Area Benefits

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


Today, the Senate have passed Tax Laws Amendment (2012 Measures No. 4) Bill 2012.

No amendments were made by the Senate and the new LAFH rules will apply from 1 October 2012.

Unless the transitional rules apply, from 1 October 2012 it will be necessary for an employee to maintain a home in Australia that is available for their private use and enjoyment at all times whilst they are living away from home. In addition, the living away from home period is capped at 12 months.

No transitional relief is provided for temporary residents unless they had a LAFH arrangement in place prior to 8 May 2012 AND are maintaining a home in Australia that is available for their private use and enjoyment at all times whilst they are living away from home.

If you want to understand more about the LAFH changes, impacts & transition and opportunties for relocation and travelling in the future, please register for our FBT Essentials 2012 Update seminars. We have two remaining dates, 9 October in Brisbane and 16 October in Sydney.

You can register here: http://www.fbtseminars.com.au/pdf/fbt_essentials_update_2012.pdf

 

 


From the ATO Website,a good summary of the recent history on the LAFHA changes, with relevant links.

On 29 November 2011, the government announced reforms to the living-away-from-home allowances and benefits. Further extensions to these reforms were announced in the 2012-13 Budget, and upon introducing the legislation into parliament on 28 June 2012.

Under the proposed changes a living-away-from-home allowance will generally be treated as assessable income of the employee rather than as a fringe benefit, with effect from 1 October 2012.

Access to the tax concessions for living-away-from-home allowances and benefits will be limited to:

  • employees who maintain a home in Australia for their personal use and enjoyment that they are required to live away from for work (regardless of whether they are permanent or temporary residents)
  • actual substantiated expenditure on accommodation, and food and drink beyond a specified amount
  • a maximum period of 12 months in respect of an individual employee for any particular work location.

Transitional rules apply to permanent residents who have employment arrangements for living-away-from-home allowances and benefits in place prior to 7.30pm (AEST) on 8 May 2012.

Transitional rules also apply to temporary residents (maintaining a home in Australia for their personal use and enjoyment that they live away from for work) who have employment arrangements for living-away-from-home allowances and benefits in place prior to 7.30pm (AEST) on 8 May 2012.

From 1 October 2012, living-away-from-home benefits (that is, the direct provision of accommodation, food or expense payments) provided to employees who would not be eligible to claim an income tax deduction had they incurred the expenses directly, will be subject to FBT.

Media release

Refer to:

  • media release no. 055, Tax changes to living-away-from-home allowances and benefits introduced into Parliament, issued by the Assistant Treasurer on 28 June 2012
  • media release no. 029, Reform of living-away-from-home allowances and benefits – draft legislation released for consultation, issued by the Assistant Treasurer on 15 May 2012
  • media release no. 148, Tax measures in mid-year economic and fiscal outlook, issued by the Treasurer on 29 November 2011.

Legislation and supporting material

Tax Laws Amendment (2012 Measures No. 4) Bill 2012 and the Explanatory Memorandum, tabled in parliament on 28 June 2012.

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More information

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