Fbt Checklist 2016

8/18/2019 Fbt Checklist 2016

http://slidepdf.com/reader/full/fbt-checklist-2016 1/21



Checklist of benefits

How to use this checklist 3Checklist of benefits 4

Cars 4

Loans 5

Debt waiver 5

Housing 6

Living away from home allowance (LA HA! 6

"ravelling e#$enses %

&ntertainment e#$enses ' meal

&ntertainment e#$enses ' other )

&ntertainment $rovi*e* by a ta# e#em$t bo*y )

+ther e#$enses $ai* on behalf of the em$loyee orassociate

)

Car $arking e#$enses ,-

.oar* ,,

+ther benefits $ai* on behalf of the em$loyee orassociate

,,

Relevant formulae 12

Car fringe benefit ,/

Loan fringe benefit ,3

Debt waiver benefit ,3

H i g b fit 3



!o" to use this checklist

"his checklist is a summary gui*e to the $roce*ures an* mechanics for $re$aring the /-,6 ." return Accor*ingly it cannot cover all theissues an* therefore $ractitioners are recommen*e* to refer to the relevant legislation

#te 1 2*entify the $otential areas of e#$en*iture or benefits that may be sub ect to fringe benefits ta#(refer to $ages 4 to ,, for a checklist of benefits that may give rise to fringe benefits ta#!

#te 2 Determine what information is re uire* to be e#tracte* from the accounting recor*s"his *e$en*s on7• the category of the benefit (refer to $ages 4 to ,, for various categories of benefits!• the metho* or formula selecte* (refer to ste$ 3 below!

#te $ Choose the formula which gives the most ta# effective result for the effort e#$en*e*(refer $ages ,/ to ,6 for a list of formulae!

#te 4 0erform an* recor* calculations

#te % &nsure that the necessary *ocumentation is ke$t to substantiate the ta#able value 0lease note that this shoul* also inclu*ecalculations an* recor*ing of benefits that are either e#em$t or have a nil value (refer $age ,)!

#te & Com$ilation of the ." return

#te ' Consi*er ta# $lanning o$$ortunities for /-,6 fringe benefits ta# year an* salary $ackaging o$tions (refer $ages /- to /,!




() enditure*benefit A licable+,es*-o.Com leteddate

/orkage Data required e ofbenefit

Cars

Benefit arises where:• a car is owne* or lease* by the em$loyer

associate or thir* $arty

erating cost method(refer formula 1.1)• log book ke$t over a ,/ week $erio* to

establish the business $ercentage which canthen be a$$lie* for u$ to four subse uentyears

• o*ometer rea*ings at the beginning an* en*of the year

• car e#$enses ' such as $etrol an* re$airsregistration an* insurance

• *e$reciation an* im$ute* interest (where thecar is owne*!

• lease costs (where the car is lease*!• em$loyee contributions (if any!

Car fringebenefit

• is ma*e available to the em$loyee or

associate for $rivate $ur$oses• the car is $rovi*e* in res$ect of

em$loyment

Exemptions include:• minor use by an em$loyee of certain

commercial vehicles such as $anel vansta#is or utilities *esigne* to carry a loa* ofless than one tonne

• unregistere* vehicles

#tatutor formula method(refer formula 1.2)• cost of motor vehicle• *ate of $urchase• em$loyee contributions (if any!• last commitment *ate of motor vehicle

Car fringebenefit

Benefit arises where: Reimbursement of em lo ee3s motor vehicle)

&#$ense$ t






loans that will be treate* as *eeme**ivi*en*s un*er Division %A

Debt "aiver

Benefit arises where:• the em$loyer has release* the

em$loyee8associate from $aying anoutstan*ing *ebt

Debt "aiver benefit(refer formula 3)• amount of the *ebt waive* inclu*ing any

interest accrue*• reason for writing off the *ebt

Debt waiverbenefit

Exemptions include:• where the *ebt owe* is written off as a

genuine ba* *ebt an* it is not waive* forem$loyment relate* reasons

!ousing

Benefit arises where:•

an em$loyee or associate is $rovi*e* withthe right to use a unit of accommo*ation

!ousing benefit(refer formula 4)• market value of the right to use the

accommo*ation• em$loyee contributions (if any!

Housingfringe benefit

• the accommo*ation is the usual home ofthe em$loyee or associate

Exemptions include:• remote area housing benefit

iving a"a from home allo"ance+ A5!A.

B fit i h i i " f h ll " + A5!A LA HA






Benefit arises where:• e#$enses are $ai* or reimburse* by the

em$loyer

()tended travel(refer formula 6)• travel *iary is re uire* where the travel is

either within or outsi*e of Australia for a*uration of more than five nights (this is tosubstantiate the business $ortion!

• recei$ts for all e#$enses e#ce$t if theamount s$ent on foo* *rink an* otherinci*entals is consi*ere* reasonable by the"a#ation +ffice in which case only*ocumentation in relation to accommo*ationan* airfares is re uire*

• *eclaration may be re uire*

&#$ense$aymentfringe benefit

• the benefit is $rovi*e* in res$ect ofem$loyment

Exemptions include:• com$assionate travel

• certain relocation trans$ort

Benefit arises where:• ta#i fare is $ai* or reimburse* by the

em$loyer

a)is• amount of e#$ense•

em$loyee contributions (if any!



Exemptions include:• ta#i travel beginning or en*ing at an

em$loyee9s $lace of work is e#em$t solong as it is a single tri$

• the travel is in relation to a sick em$loyee

• minor benefit less than =3-- (incl >1"!






income ta# *e*uction is not allowe* to theem$loyer

• minor entertainment less than =3-- (incl>1"!

Actual e) enditure method

(refer commentar" section !.2)• amount of e#$ense• em$loyee contributions (if any!• $er hea* allocation-ote 7 an election must be ma*e stating which of the abovemetho*s has been a*o$te* in res$ect of meal entertainment 2fno election is ma*e the value of the benefit must be *etermine*un*er the actual e#$en*iture metho* "he election shoul* bema*e by the time the em$loyer9s ." return is *ue to belo*ge*

;eal

entertainmentfringe benefit

(ntertainment e) enses other

Benefit arises where entertainment is pro#ided $" wa" of:

• foo* or *rink

Reimbursement of entertainment e) ense• amount of e#$ense• em$loyee contributions (if any!


• recreation accommo*ation or travel-ote 7 the benefit must be $rovi*e* in res$ect ofem$loyment

ickets to s orting and theatrical events• cost of the tickets• em$loyee contributions (if any!

0ro$ertye#$ense$ayment orresi*ualfringe benefitExemptions include:

•

t t i t $ i* * t li t






Car arking e) enses

Benefit arises where:• there is a commercial all *ay car $ark

within a one kilometre ra*ius of thebusiness $remises (measure* by theshortest $racticable *irect route! thatcharges more than = 3% a *ay at thebeginning of the /-,6 ." year

Actual benefits rovided method• number of car $arking s$aces $rovi*e* to

em$loyees• value of the s$aces•

number of business *ays *uring the year • metho* of valuation use*• em$loyee contributions (if any!• consi*eration of annual leave an*8or sick

leave taken (i e car $arking benefit notactually $rovi*e*!

Car $arkingfringe benefit

• the car is $arke* for a $erio* of more thanfour hours between % --am an* % --$m

• the car is owne* or lease* by theem$loyee8associate or is $rovi*e* for useby the em$loyer

• the car is use* for travel between homean* work by the em$loyee at least onceon that *ay

• the car is $arke* at or in the vicinity of the$rimary $lace of em$loyment

-ote 7 the benefit is $rovi*e* in res$ect of em$loyment

Exemptions include:• car $arking benefits $rovi*e* where cars

are not $arke* at a commercial car$arking station an* either the em$loyer9stotal income for the year of income$ *i h " h

#tatutor formula method (refer formula %.1)• number of s$aces• value of the s$aces• metho* of valuation use*• $l ib i (if !

Car $arkingfringe benefit






ownershi$ of the car being $arke*

:oard

Benefit arises where:• the em$loyee or associate un*er either an

in*ustrial awar* or un*er some ty$e ofarrangement is entitle* to resi*entialaccommo*ation an* at least two meals a*ay

:oard benefit(refer formula 1&)• number of em$loyees (or family members!

receiving the boar*• number of *ays boar* $rovi*e*• number of meals $rovi*e*• em$loyee contributions (if any!

.oar* fringebenefit

• the meal is $re$are* on the em$loyer9s$remises

ther benefits aid on behalf of the em lo ee or associate

Benefit arises where:• the em$loyer has $rovi*e* $ro$erty (either

in:house or e#ternal!

Pro ert benefit(refer formula 11)• *escri$tion of $ro$erty $rovi*e*• ty$e of $ro$erty (i e in:house or e#ternal!• arm9s length $rice of the $ro$erty• em$loyee contribution (if any!

0ro$ertyfringe benefit


Exemptions include:• the first =, --- of any in:house benefits-ote8 this e#em$tion *oes not a$$ly where the in:housefringe benefit is $rovi*e* un*er a salary sacrificearrangement

Benefit arises where 7• the em$loyer has $rovi*e* benefits not

Residual benefit(refer formula 11)

$ f b f

?esi*ualfringe benefit



Relevant formulae

1; Car fringe benefit A car is consi*ere* to be available for $rivate use if it is garage* at or near the em$loyee9s home or is in the em$loyee9s custo*y or control?egistration stam$ *uty an* e#ten*e* warranty costs are not inclu*e* in calculating the cost of the car However *ealer *elivery charges an*the costs of any non:business accessories (e g stereos sunroof! are inclu*e* as well as the >1" an* customs *uty $ai* on the motor vehicle(if a$$licable!

1;1 erating cost method

"a#ablevalue

("otal vehicle costs (inclu*ing *e$reciationB an*im$ute* interestBB where the vehicle is owne*!! # 0rivate use $ercentageBBB less &m$loyee

contributions

B De$reciation is calculate* on the full value of the car (i e it is not sub ect to the *e$reciation cost limit! using the rates below7

Date car urchased 5: ear ending $1 <arch 201%

$ to an* inclu*ing 3- une /--/ // 5-Erom , uly /--/ to ) ;ay /--6 , %5E

+n or after ,- ;ay /--6 /5 --E

BB2m$ute* interest is calculate* at the statutory rate (5 65E for the /-,5:/-,6 ." year!

BBB0rivate use $ercentage is the total use of the car less the business $ercentage use of the car

1 2 # f l h d



Relevant formula

2; oan fringe benefit2f the loan is being use* for income $ro*ucing $ur$oses the em$loyee must $rovi*e a *eclaration that the loan is being use* for income:$ro*ucing $ur$oses otherwise the ta#able value will not be re*uce* $ursuant to the @otherwise *e*uctible rule9

"a#ablevalue

2nterest calculate* atbenchmark statutory rateB Less Actual

2nterestBB less &m$loyeecontributions less

+therwise*e*uctibleamount

B "he benchmark statutory interest rate for the year en*ing 3, ;arch /-,6 is 5 65E "his is only a$$licable to the $rivate $ortion of the loan

BB"his is the actual interest $ai* on the $rivate $ortion of the loan

2f an em$loyee is also a sharehol*er in a $rivate com$any or an associate of such a sharehol*er the loan will not be sub ect to fringe benefitsta# but will be sub ect to the $rovisions of Division %A of the 'ncome ax ssessment ct (1%36). 2n these circumstances such a loan may beregar*e* as a *eeme* *ivi*en* unless an e#em$tion a$$lies such as where the sharehol*er enters into a com$lying section ,-)< writtenagreement which has an allowable ma#imum term an* minimum interest rate

$; Debt "aiver fringe benefit

"he ta#able value of a *ebt waiver fringe benefit in an ." year is the amount of $ayment or re$ayment of the *ebt which the em$loyee wasoblige* to $ay or re$ay which has been waive* (i e release*!

4; !ousing

-on7remote area"he ta#able value of non:remote housing benefits *e$en*s on the ty$e of accommo*ation $rovi*e* to the reci$ient

lats houses an* units ' the ta#able value of the benefit is the market value of the right to occu$y the accommo*ation less em$loyeecontribution (if any! 2n subse uent years the market value can be use* again or alternatively the market value in the first year can bein*e#e* using the C02 movement for a further nine years "he C02 factor a$$lie* will *e$en* on the 1tate or "erritory in which the $ro$erty isl *



Relevant formula

()em t food com onent&#em$t foo* com$onent is that $art of the living away from home allowance which reasonably com$ensates the em$loyee for foo* or *rinke#$enses actually incurre* by the em$loyee (an* the em$loyee9s family! *uring the $erio* the em$loyee is living away from home less the@a$$licable statutory foo* total9

"he a$$licable statutory foo* total is the sum of the statutory foo* amounts for the em$loyee an* eligible family members (i e a*ult or chil* ,/years or over at =4/ $er week an* chil* un*er ,/ years at =/, $er week! less amounts that might reasonably have been e#$ecte* to havebeen the total normal foo* an* *rink e#$enses if the em$loyee an* family ha* remaine* living at their normal resi*ence

"his $ortion of the living away from home allowance is therefore e#em$t u$ to the reasonable foo* com$onent limit "he Commissioner9s viewon the reasonable e#em$t foo* com$onent for the /-,6 ." year is set out in "a#ation Determination "D /-,58%

Any foo* an* *rink e#$enses in e#cess of those reasonable amounts (as *etermine* by the Commissioner! must be substantiate* in full bythe em$loyee an* $rovi*e* to their em$loyer Alternatively the em$loyee can $rovi*e a *eclaration to their em$loyer informing them of thetotal foo* an* *rink e#$en*iture above the Commissioner9s reasonable amount-ote8 substantiation is still re uire* to be hel* by the em$loyee where they $rovi*e the foo* an* *rink e#$en*iture *eclaration to their em$loyer

&; () ense a ment fringe benefit An e#$ense $ayment fringe benefit arises when an em$loyer *ischarges an obligation of the em$loyee or associate to $ay an e#$ense owe*to a thir* $arty or reimburses the em$loyee or associate for e#$enses they have incurre* 1uch benefits will ty$ically be regar*e* as e#ternale#$ense $ayment fringe benefits "he ta#able value of an e#ternal e#$ense $ayment fringe benefit is the amount $ai* or reimburse* by theem$loyer less em$loyee contribution (if any! "he ta#able value of such a benefit will be further re*uce* to the e#tent that the reci$ient of thebenefit woul* have been entitle* to a once:only ta# *e*uction ha* the reci$ient incurre* the e#$en*iture Concessional rules a$$ly to the

$rovision of certain in:house e#$ense $ayment fringe benefits

'; Airline trans ort fringe benefit

Airline trans$ort fringe benefits no longer e#ist as a se$arate category of fringe benefit sub ect to its own valuation rules Ghere an airlineo$erator $rovi*es in the course of em$loyment free or *iscounte* air travel on a stan*:by basis to em$loyees or their associates suchbenefits are now treate* as in:house resi*ual or $ro$erty fringe benefits as *iscusse* in the commentary on those benefits below

>; (ntertainment e) enses meal

%0 %0 li h d



Relevant formula2t is im$ortant to remember the following when *eci*ing on which metho* to use when calculating meal entertainment fringe benefits7

%0*%0 s lit method8• by combining meal entertainment for both em$loyees an* non:em$loyees the formula assumes that only 5-E of meal entertainment is

$rovi*e* to non:em$loyees 2f in fact more than 5-E is in res$ect of non:em$loyees this a**itional amount will be allowe* as a ta#*e*uction but ." will be $ayable on the grosse* u$ amount

• the otherwise *e*uctible rule *oes not a$$ly nor are any em$loyee contributions taken into account• the e#em$tions for $ro$erty fringe benefits are not a$$licable

12 "eek register method8• only if the ." calculate* over the ,/ week $erio* is in*icative of the entire year will the ." $ayable e uate to the meal entertainment

actually $rovi*e*• the otherwise *e*uctible rule *oes not a$$ly nor are em$loyee contributions taken into account• the e#em$tions for $ro$erty fringe benefits are also not a$$licable

9; Car arking fringe benefit"here are three metho*s of *etermining the value of car $arking fringe benefits7• commercial $arking station metho* ' the lowest fee charge* for all *ay $arking by any commercial $arking station within a one kilometre

ra*ius of where the car is $arke*• market value8arm9s length metho* ' value *etermine* by a ualifie* valuer • average cost metho* ' the average of the lowest fees charge* on the first an* last *ay of the ." year

"here are three metho*s of *etermining the number of car $arking fringe benefits7• actual benefits $rovi*e* metho*• statutory formula metho*• ,/ week register metho*

9;1 #tatutor formula method



Relevant formula

10; :oard fringe benefit Age* ,/years or over =/ -- $er meal # <umber of

meals $rovi*e* less &m$loyeecontribution less +therwise

*e*uctible amount

Age* un*er,/ years =, -- $er meal # <umber of

meals $rovi*e* less &m$loyeecontribution less +therwise

*e*uctible amount

11; Pro ert and residual benefits"he ta#able value is generally the arm9s length value of the benefit

or in:house benefits or re ects or re*uce* value benefits the ta#able value is generally either %5E of the arm9s length value or %5E of thelowest $ublic $rice charge* "he ta#able value of such a benefit is re*uce* by any em$loyee contributions an* any otherwise *e*uctibleamounts

Ghere an airline o$erator $rovi*es in the course of em$loyment free or *iscounte* air travel on a stan*:by basis to em$loyees or theirassociates these shoul* now be treate* as in:house resi*ual or $ro$erty fringe benefits

Ghere such a benefit is not $rovi*e* un*er a salary $ackaging arrangement the ta#able value of the benefit is calculate* as follows7"a#able alue %5E of stan*:by airline travel value less consi*eration $ai* by the reci$ient

"he stan*:by airline travel value is calculate* as follows7

Domestic "ravel7 5-E of the carrier9s lowest stan*ar* single economy airfare for that route as $ublicly a*vertise**uring the year of ta#

2nternational "ravel7 5-E of the lowest of any carrier9s stan*ar* single economy airfare for that route as $ublicly a*vertise**uring the year of ta#



ther 5: as ects?ross7u rules"o ensure neutrality between an em$loyee receiving a fringe benefit or cash salary within the conte#t of the >1" system changes wereintro*uce* to the way in which the relevant gross:u$ formula is calculate*

"he fringe benefits ta#able amount is *e$en*ent on the relevant gross:u$ formula A higher gross:u$ formula has been intro*uce* to take intoaccount the effect of in$ut ta# cre*its being able to be claime* in certain circumstances in res$ect of >1" $ai* on some fringe benefits "helower gross:u$ rate is still a$$licable in certain circumstances an* is , )6- "he higher gross:u$ rate is / ,463

Ghich of these gross:u$ rates is to be a$$lie* *e$en*s on whether the amounts are @ty$e , aggregate fringe benefits amounts9 or @ty$e /aggregate fringe benefits amounts9

e 1 aggregate fringe benefits amounts

"he @ty$e , aggregate fringe benefits amount9 re$resents the total value of fringe benefits $rovi*e* to em$loyees or their associates where the$rovi*er of the benefit (i e em$loyer! was entitle* to in$ut ta# cre*its (assuming the entity is registere* for the >1"! at the time the benefit wasac uire* "he amount is then grosse*:u$ to a >1" inclusive value by a$$lying the higher ." gross:u$ formula that is7

"his gross:u$ formula effectively recou$s any in$ut ta# cre*its arising from the $rovision of fringe benefits A "y$e , aggregate fringe benefitsamount is multi$lie* by / ,463 (to be re*uce* to / - -/ from , A$ril /-,%!

e 2 aggregate fringe benefits amounts"he secon* ty$e of aggregate fringe benefits amount $rovi*es for situations where7• fringe benefits are $rovi*e* an* their ta#able value is *etermine* before the intro*uction of the >1" ($re :, uly /---!• fringe benefits are >1":free or in$ut ta#e*• the goo*s or services are not ac uire* by the em$loyer for e#am$le the goo*s or services are manufacture*• small business em$loyers have o$te* not to register for the >1"

"his gross:u$ formula means that the "y$e / aggregate fringe benefits amount is multi$lie* by , )6- (to be re*uce* to , 6 from , A$ril/-,%!

5: concessional treatment of ublic benevolent institutions +P:6.@ 5: rebatable em lo ers and rivate not7for7rofit and ublic hos itals

*u$lic $ene#olent institutions and charita$le institutions

Concessional ." treatment is available to 0.29s charitable institutions an* $rivate not:for:$rofit an* $ublic hos$itals



ther 5: as ects

5: gross7u rate Accor*ing to the Australian "a#ation +ffice the higher ." gross:u$ rate will not affect the calculation of an em$loyee9s re$ortable benefitsamount Ghen calculating an em$loyee9s in*ivi*ual fringe benefits amount em$loyers will continue to use the lower gross:u$ rate of , )6-for re$orting on the em$loyee9s 0ayment 1ummary "his is regar*less of whether benefits $rovi*e* to em$loyees are @ty$e ,9 or @ty$e /9benefit

"he following e#am$le e#amines the cost to an em$loyer in $rovi*ing ty$e , or ty$e / fringe benefits as o$$ose* to $aying a salary

A fringe benefit rovided b a com an value 1@100 +incl; ?# .

e 1 aggregate fringe

benefit amount>ross:u$ rate7 / ,463

e 2 aggregate fringe

benefit amount>ross:u$ rate7 , )6-

&m$loyer is entitle* to an in$utta# cre*it

&m$loyer is not entitle* to an in$utta# cre*it

+1. Cost to em lo er

a)es aid to A a)es aid to A

+a. :enefit

Cost of benefit (>1" incl ! (A! , ,-- , ,-->1" $ai* (.! : ,--

Less 2n$ut ta# cre*it (C! ,-- :

<et cost of benefit (D! , --- , ,--

>ross:u$ for ." ( A # gross:u$ rate! / 36, / ,5%

." $ayable at 4)E (> # 4)E! , ,5% , -5%

"otal ta# $ai*8$ayable (H! , ,5% , ,5%



Declarations and other records

Declarations• car fringe benefit *eclaration• e#$ense8resi*ual8$ro$erty benefit *eclaration 2f a$$licable one of the following *eclarations can be ma*e in its $lace7

− no $rivate use *eclaration− recurring benefits *eclaration (can be use* for a $erio* of u$ to five years!-ote8 or e#$ense $ayment fringe benefits in relation to @e#ten*e* travel9 a travel *iary is re uire* Also the no $rivate use *eclaration is not available for $ro$erty fringe benefits

• loan fringe benefit *eclaration• living away from home *eclaration "here are four $ossible *eclarations to com$lete from , +ctober /-,/7

− living away from home *eclaration ($re , +ctober /-,/!− living away from home *eclaration (em$loyees who fly:in fly:out or *rive:in *rive:out!− living away from home *eclaration (em$loyee:relate* e#$enses!− living away from home *eclaration (em$loyees who maintain an Australian home!

• relocation8remote area holi*ay trans$ort *eclaration• meal entertainment election• car $arking fringe benefit election

Be features of declarations generall include8• name of em$loyee• a$$licable *ates• nature of the e#$ense etc• $ur$ose of incurring the e#$enses etc• the $ercentage the e#$enses etc were inclu*e* in earning assessable income



Planning techniques6ncrease in 5: rate"he ." rate is 4)E for the current year an* for the ." year en*e* 3, ;arch /-,% However the ." rate will be re*uce* to 4%E from theyear en*e* 3, ;arch /-, onwar*s

ther"ise deductible rule"he ta#able value of a fringe benefit can generally be re*uce* to the e#tent that the em$loyee woul* be entitle* to a Jonce onlyK income ta#*e*uction ha* he8she $urchase* the benefit

?eneral advantages of salar ackaging• any benefits $ackage* are not taken into account when calculating the su$erannuation guarantee charge obligations• em$loyee loyalty (em$loyees may be more likely to remain with an em$loyer where a significant $ortion of their salary is $ackage*!

− e g a car • e#em$t an* concessionally ta#e* benefits are not fully sub ect to $ayroll ta# an* GorkCover

Cars"he statutory formula metho* in relation to the calculation of the motor vehicle fringe benefit still results in the $rovision of a car benefit beingconcessionally ta#e*

As the statutory formula metho* of calculating fringe benefits is base* on the number of *ays the car is available for $rivate use there is the$ossibility of re*ucing the fringe benefit by re*ucing the number of *ays the car is use* or e#am$le if an em$loyee has two cars available touse the high cost car coul* remain on the em$loyer9s $remises *uring the working week an* use* only on the weeken*s "he secon*vehicle which is owne* by the em$loyee can be use* *uring the week to travel to an* from work "he ta#able value of the car can be re*uce*significantly using this strategy

2t is im$ortant to note that a flat statutory $ercentage of /-E will a$$ly in calculating the ta#able value of a car fringe benefit un*er the statutoryformula metho* unless the car was ac uire* un*er an agreement entere* into $rior to % 3- $ m on ,- ;ay /-, an* there has been nochange to the $re:e#isting commitments un*er that agreement after that *ate Accor*ingly the estimate* number of kilometres travelle* isgenerally no longer a factor in the $rovision of car fringe benefits

Leases entere* into after / -th August ,))6 may affect the metho* of $ackaging an em$loyee9s motor vehicle Leases for motor vehicles ine#cess of =5% 466 (i e the *e$reciation cost limit for the /-,5:/-,6 financial year! entere* into after this *ate will be treate* in a similar wayas to hire $urchase arrangements

Ghere an em$loyee $urchases a motor vehicle at the en* of a lease there will be no ." im$lications if the amount $ai* by the em$loyee



Planning techniques A la$to$ may therefore ualify as an eligible work:relate* item as a $ortable electronic *evice an* is ." e#em$t $rovi*e* that it is inten*e* tobe use* $rimarily for work:relate* $ur$oses

An em$loyee can be $rovi*e* with more than one $ortable electronic *evice $rovi*e* the items *o not have substantially i*entical functionsan* are use* $rimarily for work:relate* $ur$oses

"his e#em$tion is limite* to one item $er ." year for items that have a substantially i*entical function unless the item is a re$lacement item

However from , A$ril /-,6 an em$loyer who is a small business entity will be able to $rovi*e more than one electronic *evice to an em$loyeewhich have substantially i*entical functions which will be e#em$t $rovi*e* the $rimary work test is met for each *evice

A$$ro$riate substantiation must be retaine* to show that the items are use* $rimarily for work:relate* $ur$oses

ther e)em tions include8• use of em$loyer9s staff amenities• com$assionate travel• fly:in fly:out arrangements where the work is $erforme* in a remote area in Australia (e g on an oil rig!• costs incurre* in res$ect of travel for em$loyees an* future em$loyees in relation to em$loyment interviews an* selection tests• certain long service leave an* safety awar*s• certain emergency assistance given in res$ect of health care• where trainees are engage* un*er an Australian traineeshi$ system an e#em$tion is $rovi*e* in res$ect of foo* *rink an* accommo*ation• foo* an* *rink $rovi*e* for non live:in *omestic em$loyees where the em$loyer is a natural $erson or a religious institution•

foo* *rink an* accommo*ation $rovi*e* for live:in hel$ for el*erly or *isa*vantage* $ersons "here is also an e#em$tion where the $ersonis em$loye* by a religious institution

(m lo ee share lans&m$loyee share $lans in relation to Division 3A of the 2ncome "a# Assessment Act ,))% are e#em$t from ." 2n a**ition un*er Division

3A the first =, --- of the *iscount receive* will be e#em$t from ta# in the han*s of the em$loyee if certain con*itions are satisfie* Alsofurther amen*ments have been ma*e to the em$loyee share scheme rules un*er Division 3A effective from , uly /-,5 which amongstother things $rovi*e a**itional ta# concessions for shares or rights ac uire* in eligible start:u$ com$anies

Childcare and recreational facilities



A endi) A

#ummar of entertainment deductibilit for ta)able em lo ersocation -ature of e) enditure Attendee a)

deductible5:

a able

&m$loyer $remises but not in an @in:house *ining facility9

<on:entertainmentB &m$loyee Yes No**

Client Yes No**

Entertainment &m$loyee No** No**

Client No No

Entertainment Employee (socialoccasions)

No** No**

Employer premises in an ‘in-house dining facility’ – an areaset aside wholly or principallyfor pro ision of food and drin!to employees on a wor!ing day"such as a cafeteria#

<on:entertainmentB &m$loyee Yes No**

Client Yes$ No

Entertainment &m$loyee Yes No**

Client Yes$ No


No** No**

<on:em$loyer $remises such as arestaurant or rece$tion centre

Non-entertainment(meals ta!en whilsttra elling)

&m$loyee Yes No

Entertainment &m$loyee Yes Yes

Client No No


Yes Yes



A endi) :5ringe benefits ta)

6nternal and e)ternal entertainment

5r inge benefi ts ta ) ear end ing $1 <arch -ame of c li ent8

1 2 $ 4 % & ' > 9 10 11

Date enue8"y$eof function

BCost of function= c

<o of em$loyees

<o of clients8customers

"otalno atten*e*

Cost $er hea*

<on:*e*uctibleentertainment= c

De*uctibleentertainment= c

"otalentertainment= c

." ta#ablevalue= c

B 2nclu*es travel meals an* entertainment 2nclu*es family members

/,

Documents

Fbt Checklist 2016