Monday 24 Feb 2020
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Latest Accounting News
Hot Issues
Debate heats up around $10k cash ban bill
There’s still time to move to Single Touch Payroll (STP)
Real Time World Population Growth - Wow!!
ATO audits continue to target Lifestyle assets
Property deduction errors down to ‘lack of understanding’: ATO
Data can be great stuff! - Australia
GST refunds for returned imported goods
14k employers, $230m in super: Financial Services Minister defends proposed SG amnesty
Bushfires 2019–20 (ATO)
Accounting profession responds to bushfire crisis
Helping your business survive a natural disaster - ATO
Single Touch Payroll (STP) – now ensure super is paid on time.
Beware of Australian Taxation Office (ATO) impersonation scams
Australia by the Numbers
‘Visible, valued and owned’: ATO outlines super priorities for new year
Introductory Rates & Interest Free Periods
Our Advent calendar for 2019
Tax Office sounds warning on 8 types of super schemes
Don’t forget sharing economy income
Impress your friends with your knowledge!!
Salary sacrificing and the superannuation guarantee
Why so much super “stuff” this year?
Reverse Mortgage?
How the gig economy could create hidden tax issues for contractors and employers
15,000 tip-offs as ATO black economy hotline rings hot
What happens when interest rates hit the floor?
Director Penalty Notices (DPN)
Articles archive
Quarter 4 October - December 2019
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Quarter 4 October - December 2001
Quarter 1 of 2004
Articles
Fringe Benefits Tax and Odometer Readings
Income Tax - Car Expenses
Income Tax ? Car Expenses - Log Book Method.
Income Tax ? Car Expenses - One third of actual Expenses
Income Tax ? Car Expenses - 12% of Cost.
Income Tax ? Car Expenses - Cents per Km method
Property Depreciation Explained.
Reasonable Allowance Limits 2003/04
Tax Deduction for Life Insurance?
Real Estate & Self Managed Superannuation Funds
Employee Safety Net
Tax Audit Activity ? Motor Vehicle Expenses
Depreciation Adds Value
FBT and Record Keeping
FBT and Entertainment
FBT and In-house Benefits
FBT and Laptop/Portable Computers
FBT and Minor Benefits
FBT and Gifts to Clients
FBT ? Christmas Parties and Taxi Fares
Christmas Parties ? FBT & Income Tax
FBT and In-house Benefits
An exemption exists for the first $500 of in-house benefits (ie. Goods and services, which the employer sells or supplies to a third party in the ordinary course of business,) given each FBT year to an employee or to his/her associates.

For goods normally sold to the public, the value of any in-house benefit is 75% of its arm?s length value.  Depending on the circumstances, that could be based on the retail or wholesale price, or even a lower value if that represents the arm?s length value.

For non-retail goods, the value is usually the lowest arm?s-lengths selling price to their ordinary customers, less any employee contribution.

For an employer providing benefits in this way, there can be a ?win-win? situation for both the employer and employee.  The employer gets to sell more goods while the employee gets to purchase their ?Christmas presents? at a discount.  Provided that the threshold is not exceeded there is no FBT payable by the employer.

Example A clothing manufacturer/retailer sells their designer jeans retail at $100, but sells to staff at $50 each.  For FBT purposes, the taxable value is

75% x $100 = $75.00 less $50 = $25

The employer could provide an employee with up to 20 units of such clothing to the retail value of $2,000 and be exempt from FBT under this rule.

See also our other articles about FBT.






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