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Employee Expenses

Warning: FBT turbulence ahead

Australian Taxation Office, Employee Expenses, Gifts, Policy, Travel
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I regularly get asked the same questions, such as:

Is my Single Cab Ute / Double Cab Ute exempt from FBT? (probably not)
Is my car (that I use 100% for business) subject to FBT? (probably)
Do I need a Logbook? (highly recommended)
How many times can I claim the Minor Benefit Exemption? (fingers, no toes)
Are my coffee catch ups subject to FBT? (let’s grab a coffee, prefer beer, and discuss)
How do we work out if our car parking is subject to FBT? (we can help you)
Should we / our clients register for FBT? (highly recommended)
Do the ATO audit FBT? (yes they do) 

One question that I get asked now and again (I guess you could say if flies a little under the radar – excuse the pun) is: Are my frequent flyer points subject to FBT or Income Tax?
The answer is: It Depends.
– How have you earned the points?
– Has there been or is there an arrangement in place?
– How can you use the points?
– How have you used the points?
– Have you read the ATO guidance?
Understanding how your employees might be earning points and how they (or mates or relatives) can use the points is a good starting point. Having a written policy is probably the next step. Or as they say in the industry – stay buckled up and always follow the crew instructions, just in case there’s some FBT turbulence ahead!
FBT points turbulence frequentflyer pointyend flyingflat

Aussie can fly business for free for rest of life

news.com.au

Removal and relocation – obtaining a tax deduction via Salary Packaging

Employee Expenses, Exempt Benefits, Relocations, Salary Packaging, Uncategorized
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Removal and relocation expenses are those costs you incur to transfer or relocate for a work purpose. You can’t claim a deduction for removal or relocation costs. Even if relocating is a condition of your employment when you take up:

  • a transfer in an existing employment
  • new employment with a different employer.

Removal and relocation expenses never have a sufficient connection to earning your employment income or income producing activities. You incur these expenses to start earning employment income so they are private or domestic expenses.

However, Salary Packaging is a mechanism whereby you (the employee / individual) can claim a deduction for relocation expenses.