If you work for or own an Accounting or Professional Services Firms located in a Remote Area, then there is an opportunity to access the Remote Area concessions in the FBT Law.
However, one of the criteria is that it must be Customary in the Industry to provide the remote area benefits.
I’m interested in hearing from any Accounting Firms or Professional Services Firms that are located in a remote area. This might be an opportunity for your firms, but also for your clients.
Please feel free to email me: paul.mather@fbtsolutions.com.au or call me on 02 8216 0750 or 0403 050 358.
The ATO’s new ruling on Car Parking and FBT TR2021/2 has been released to reflect contemporary commercial car parking arrangements and legal developments including the Federal Court decisions in Commissioner of Taxation v Qantas Airways Ltd [2014] FCAFC 168 and Virgin Blue Airlines Pty Ltd v Commissioner of Taxation [2010] FCAFC 137.
The ruling has simplified (and broadened) the definition of what constitutes a commercial parking station for the purpose of assessing and calculating FBT liability for car parking.
Practically, car parking stations at shopping centres, hospitals, hotels and the like that were previously not considered commercial for the threshold and valuation tests, are now considered to be commercial car parking stations.
If you are unsure of your car parking FBT obligations, we suggest that you consider further sooner rather than later – the new rules commenced back on 1 April 2022 and will need to be considered in your 2023 FBT Return.
Whilst the definition of what is a commercial parking station is now easier to understand, it will create more headaches for employers. Let us be the panadol to your car parking headache and request a no obligation fee quote to do the heavy lifting for you: https://form.jotform.co/80218922354859
I was recently asked – What are some practical tips on how to get my clients to take the need to register for FBT seriously?
My suggestions regarding the implications of not being registered and reasons for being registered:
If your not registered for FBT then you won’t be thinking about FBT – ie there is no annual obligation. By registering for FBT, you need to be thinking about FBT at least once a year (hopefully more frequently)
ATO are actively FBT auditing Small Businesses
The ATO have identified a $1 billion FBT gap and attribute this loss of revenue to small business
The ATO are extracting vehicle registration in each State and Territory and checking against FBT registration – this is real low hanging fruit
If an employer is not registered for FBT, then the ATO has unlimited powers to audit past years – we are seeing some audits going back up to 12 years and in one current FBT audit 16 years
If registered for FBT, the ATO will generally only look back at 2-3 years and be more accepting of genuine mistakes
In addition to FBT liabilities, the ATO will charge penalties (up to 200%), accrued interest and failure to lodge penalties
The ATO will expect any past Reportable Fringe Benefit obligations to be complied with in relation to current and former employees – this can get messy very quickly. Employees (and former employees) will expect the employer to foot the bill of any personal income tax return amendments, and request other compensation
From the FBT audits we have been involved with, the ATO are also raising concerns with Income Tax deductibility and entitlement to claim GST credits
There are 13 defined fringe benefit categories – FBT is not just about Motor Vehicles and Entertainment
The grossed up value of Fringe Benefits must be included in the calculation of Taxable Wages for Payroll Tax liability calculation and calculating Workcover premiums
The ATO are actively encouraging Tax Agents to ensure they have a “FBT Service Line” offering and that Tax Agents are engaging with their clients on FBT
Reputational Risk and Business Disturbance, High Stress Levels
