Salary Packaging remains a popular remuneration strategy for many employers. However, many employers, and more importantly their employees, are missing out on the opportunity provided by Salary Packaging.

Salary Packaging provides a key solution to offering flexible remuneration to your employees, by providing employees with a pay increase at no additional cost to the Employer. For FBT exempt and rebatable employers, Salary Packaging remains a key policy component of remuneration.

The application of the FBT rules will be explained in detail. Key benefits covered in this webinar include Cars, Car Parking, and Relocation, LAFH benefits, Remote Area benefits and other Exempt Benefits.

Webinar Learning Outcomes:

By attending the webinar, attendees will be provided with an understanding of salary packaging cars and a variety of other benefits. Guidance will be provided on what can and cannot be packaged, and the various valuation and structuring methods available. The webinar assists attendees in understanding the concept of salary packaging and how to maximize the benefits of salary sacrificing for employers and employees. Providing practical knowledge to assist in managing and understanding the salary packaging of cars and other benefits, the webinar covers the following:

• Understand the concept of salary packaging
• Determine the requirements for an effective salary sacrifice arrangement
• How to salary package
• Calculation examples showing the effect on after-tax income for various income levels
• Comparison of Pre-tax FBT method and Post-tax contribution method for Cars and Car Parking
• Comparison of Statutory formula method and Logbook method for Cars and Car Parking
• Salary packaging arrangements for different employer types

Salary Packaging of:

1. a) Cars
2. b) Car Parking
3. c) Relocation & LAFH benefits
4. d) Remote Area benefits
5. e) Portable Electronic Devices including Laptops / Tablets
6. f) Airline Lounge Memberships
7. g) School Fees (Expatriates)
8. h) Mortgage, Rent, Credit Cards
9. o) Understand the key challenges

Suited to:

This webinar is suited to those in practice or corporate roles, from beginners to advanced, those involved in FBT reporting or management/policy of salary packaging, including:

• Tax agents and tax advisors
• Accountants in Public Practice
• Tax Accountants
• HR Personnel (from officers to General HR Managers)
• Payroll Accountants
• Payroll Managers and their teams
• Finance Managers
• Financial Accountants
• Management Accountants
• Tax Managers
• Fleet Managers
• Salary Packaging Managers

Presenter Bio:

Paul Mather, Founder, and Director of FBT Salary Packaging Solutions has over 20 years hands-on, Salary Packaging and FBT experience. Paul is a current member of the ATO’s FBT Working Group and the ATO’s Small Business Liaison Group. Paul was a member of the former Australian Taxation Office National Tax Liaison Group (NTLG) Fringe Benefits Tax Subcommittee from 2005 to 2013. An accomplished trainer and speaker, Paul delivers his topic in a practical and insightful manner.

You will be provided with: 

• PowerPoint presentation slide deck
• Supporting documentation
• Webinar Recording to view multiple times for up to 6 months
• Q&A Session and the presenter’s contact details for follow up questions

The ATO has signaled significant reform of the FBT car parking rules, together with increased FBT audit and compliance focus. This webinar will provide a detailed analysis of the new and existing FBT rules as they apply to car parking including alternate valuation methodologies and application of the concessions and exemptions.

In this webinar, we will focus on the key FBT rules, areas of risk for car parking, and ways to reduce an employer’s FBT cost. We will cover the current areas of ATO concern and consultation including the definition of a commercial parking station, the new car parking operators causing disruption and car parking market valuation. Attendees will be given an understanding of the key areas to focus on for managing FBT, planning strategies and policy implementation. Paul will highlight common errors and dispel many myths.

The FBT car parking rules are complex and require careful consideration to ensure compliance and to maximize savings. This webinar will provide you with a clear understanding of the rules governing car parking fringe benefits, the steps required to ensure compliance and strategies to minimize FBT liabilities.

Webinar Learning Outcomes:

• A clear understanding of how to determine if an FBT liability for employer-provided car parking exists.
• The new ATO ruling and the detailed guidance contained in the revised Chapter 16 Employer Guide.
• The ATO issue with market valuation method.
• Recent ATO audit activity on car parking.
• A process for identifying if taxable car parking is provided.
• A detailed explanation of the 3 methods available for counting the number of car parking benefits.
• A detailed explanation of the 3 methods available for valuing car parking benefits.
• Key solutions for minimizing FBT liabilities.
• Common errors and dispelling the many myths associated with car parking & FBT.

Suited to:

This webinar is suited to those in practice or corporate roles, from beginners to advanced. As well as anyone involved in FBT reporting for car parking or those tasked with managing motor vehicles & employee parking from an operational or policy perspective including:

• Tax agents and tax advisors
• Accountants in Public Practice
• Tax Accountants
• HR Personnel (from officers to General HR Managers)
• Payroll Accountants
• Payroll Managers and their teams
• Finance Managers
• Financial Accountants
• Management Accountants
• Tax Managers
• Fleet Managers
• Salary Packaging Managers

Presenter Bio:

Paul Mather, Founder and Director of FBT Salary Packaging Solutions has over 20 years hands-on, Salary Packaging and FBT experience. Paul is a current member of the ATO’s FBT Working Group and the ATO’s Small Business Liaison Group. Paul was a member of the former Australian Taxation Office National Tax Liaison Group (NTLG) Fringe Benefits Tax Subcommittee from 2005 to 2013. An accomplished trainer and speaker, Paul delivers his topic in a practical and insightful manner.

You will be provided with: 

• PowerPoint presentation slide deck
• Supporting documentation
• Webinar Recording to view multiple times for up to 6 months
• Q&A Session and the presenters contact details for follow up questions

Summary – What this draft Ruling is about:

1. This draft Ruling sets out when an employee can deduct transport expenses under section 8-1 of the Income Tax Assessment Act 1997. This includes the cost of travel by airline, train, taxi, car, bus, boat or another vehicle.
2. This Ruling explains that transport expenses incurred for ordinary travel between home and a regular place of work are not deductible. In contrast, transport expenses incurred by an employee is traveling between work locations usually are deductible. This Ruling also explains a number of special cases or exceptions to these general rules.
3. This Ruling also applies for the purposes of the Fringe Benefits Tax Assessment Act 1986in determining whether such expenses paid by the employer would have been ‘otherwise deductible’ if incurred by the employee.
4. This Ruling does not address:

• The substantiation of transport expense.
• Transport expenses related to self-education or study – refer to Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in the business.
• The deductibility of parking fees.
• Employees carrying out itinerant work – refer to Taxation Ruling TR 95/34 Income tax: employees carrying out itinerant work – deductions, allowances and reimbursements for transport expenses..
• Fringe benefits tax generally, except for the application of the ‘otherwise deductible’ rule.

6. An employee can only deduct a transport expense under section 8-1 to the extent that:

• They incur the expense in gaining or producing their assessable income^[4]
• The expense is not of a capital, private or domestic nature
• The applicable substantiation requirements satisfied.

7. For an expense to be incurred ‘in’ gaining or producing an assessable income it is both sufficient and necessary that the occasion of the expense should be found in whatever is productive of the assessable income.
8.  Deductibility of transport expenses – general principles
9. Where the occasion of transport expenses can be found in the employee’s employment duties, the expenses will be incurred in gaining or producing the employee’s assessable income.
10. It has long been established that the term ‘incurred in gaining or producing assessable income’ is understood as meaning incurred ‘in the course of gaining or producing’ assessable income. Other ways that this has been expressed in the context of transport expenses, is that the employee is traveling ‘on work’, the travel is part of the employment the travel is an incident of the employment.
11. When the final Ruling is issued, it is proposed to apply both before and after its date of issue. However, the Ruling will not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of the Ruling. To the extent that there is any conflict between the final Ruling and draft Ruling TR 2017/D6, the Commissioner would have regard to the earlier draft in deciding whether to apply compliance resources in income years to which the earlier draft applies.

For further details refer ATO

Fringe benefits tax: car parking benefits

This draft ruling sets out when the provision of car parking is a car parking benefit for the purposes of the Fringe Benefits Tax Assessment Act 1986.

Background:

This Ruling replaces Taxation Ruling TR 96/26 Fringe benefits tax: car parking fringe benefits (now withdrawn). Chapter 16 of the Fringe benefits tax – a guide for employers (Employers’ guide) provides additional guidance to help employers calculate the taxable value of a car parking fringe benefit and provides practical examples.

Ruling:

Subsection 39A (1) prescribes the conditions which must be satisfied before a benefit is a car parking benefit.

When do you provide a car parking benefit?

1. You provide a car parking benefit on a particular day when between 7.00 am-7.00 pm:

• A car is parked at a work car park for the minimum parking period.

• An employee uses the car in connection with travel between their place of residence and primary place of employment at least once on that day.

• The work car park is located at or ‘in the vicinity of the primary place of employment, on that day.

• A commercial parking station located within a one-kilometer radius of the work car park used by the employee.

• The ‘lowest representative fee’ charged by any commercial parking station for all-day parking within a one-kilometer radius of the work car park exceeds the car parking threshold (the car parking threshold requirement).

• The parking is provided to the employee in respect of their employment, and

• The parking is not excluded by the regulations. For example, car space is excluded if it is provided to a disabled employee who holds and displays a valid disabled person’s parking permit and the permit allows the employee to park in spaces that are designated for the exclusive use of a disabled person.

2. You do not have to be the employer to provide a car parking benefit as long as it is provided under an arrangement with the employer. Further, you can provide a car parking benefit in relation to a car where the use of that car is an exempt benefit.
3.  A car that is parked at one or more work car parks on the same day, between 7.00 am-7.00 pm, may also satisfy the minimum parking period.
4. Ordinarily, where there is no evidence that the employee and employer are dealing with each other in any other capacity, the parking is provided to the employee in respect to oftheir employment.

All-day parking available to the public on payment of a fee

5. The term ‘public’ takes its ordinary meaning. A car park is offered to the public where car spaces are available to any member of the public. Contractual terms may restrict who may use the car park, for instance, an airport car park may be restricted to passengers and greeters of passengers. Such restrictions do not prevent the car park from being available to the public, provided any member of the public that accepts these restrictions can use the car park.

Date of effect

6. When the final Ruling is issued, it is proposed to apply to car parking benefits provided in FBT years commencing before and after its date of issue. In any case, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 to 76 of Taxation Ruling TR 2006/10).

Contact us for further details.

What can you expect?

A comprehensive update on the FBT changes for 2020 including:

• Recent law and ATO changes
• Overview including Type 1 and Type 2 benefits and employee contributions
• How to prepare the 2020 FBT Return form
• Special rules for Exempt and Rebatable Employers
• Motor vehicles valuation using either the statutory formula method and operating cost or logbook method
• Motor vehicle exemptions
• Car parking benefits including new ATO guidance
• Meal Entertainment, Recreational Entertainment, and Entertainment Facility Leasing
• Tax Exempt Body Entertainment
• Temporary and Permanent Relocations / LAFHA v Travel / Remote Area / Expatriates
• Expense Payments, Property benefits, Residual benefits
• Exemptions and Concessions
• ATO audit activity
• Employer elections and declarations
• Employee declarations
• Employee reportable fringe benefits amounts (RFBA)
• Post Lodgment requirements

You will receive guidance on how to prepare the 2020 FBT return and:

• Learn how to identify and value all benefits
• Work through the valuation methodologies for all benefit categories including Cars, Car Parking, Entertainment, Temporary & Permanent Relocations, Living Away From Home, Remote Area, Employee Expenses and Property
• Gain an understanding of the key documentation requirements for claiming reductions, concessions, and exemptions
• How to avoid the most common mistakes that organizations make
• Discover ways that you can achieve real savings and reduce the tax liability for your organization

Attendees will be provided with:

• A detailed 2020 FBT Technical Manual
• Our 2020 FBT Planner Checklist
• Our 2020 FBT Essentials Checklist
• An attendance certificate for CPD/CPE purposes (6.25 hours)
• Lunch, morning & afternoon tea
• Opportunities to network with your peers and fellow FBT-preparers over lunch

Registrants also receive the following special offers:

1. Free access to the FBT Query service until 30 June 2020 – the sooner you register, the sooner you’ll have access to this valuable service from FBT Solutions
2. A free Fleet and FBT optimization review
3. A free Salary Packaging review
4. Preferential pricing for the FBT Solutions car parking valuation service
5. Receive a 20% discount on the FBT 2020 webinar program

Who should attend?

All personnel involved in the preparation or review of the 2020 FBT return, whether new to FBT or those requiring refresher training. This includes Tax Accountants, Financial Accountants, Payroll Managers and Staff, HR Managers and their teams.

Contact us for further details.