Fringe Benefits Tax _FBT_ by hjkuiw354


									             Issue 53 — March 2010
             Special Edition

                                Fringe Benefits Tax (FBT)
                                It is that time of year when businesses need to consider if any Fringe Benefits have been provided
                                to employees or their associates (an associate of an employee is their spouse, children, other family
Fringe Benefits Tax             members, a related trust or company).
(FBT)                           Please find below a checklist/questionnaire to see if you have provided any of the following fringe
                                benefits during the FBT year (1 April to the 31 March). Please note that this is not an exhaustive
MYOB Accounting                 list but covers the common types of fringe benefits provided to employees.
                                Motor Vehicles                                                                          Yes     No
Standard Business
                                Do you provide motor vehicles that are available for use by staff?
Reporting (SBR)                                                                                                                 
                                This could be just driving to and from work. We recommend that all motor vehicles
                                provided (even by way of novated lease) by employers have an odometer reading
Proposed Land Tax
                                taken as at 31 March 2010.
                                Loans                                                                                  Yes      No
Small and
Unidentifiable Super            Did your organisation lend any money to an employee (or his/her associate)?                     
to be paid to ATO               Is the rate of interest being charged less than 5.85%. Some examples include
                                advances of money, the provision of credit or the payment of an amount where
Telstra 2010                    there is an obligation to repay the amount.
Business Awards

                                Car Parking                                                                             Yes      No

                                Did your organisation provide car parking facilities to an employee (or his/her                 
                                associates) and is the turnover of your business and associated business more the
                                $10 million?
                                If yes, is there a commercial parking station located within 1km distance of your
                                premises and does the commercial car parking station charge members of the
                                public more than $7.25 for all day parking, is the car parked on the premises for
                                                                                                                                
                                more than 4 hours between 7am and 7pm?

                                (Some employers eg charities, public educational institutions, government bodies
                                are exempt)
Goods Provided                                                                                                Yes   No

Do you provide goods to any employees or their associates for free or at less than their market value?             

Some examples are gift baskets, goods produced by your organisation and gift vouchers. Also laptops,
software, a briefcase or tools of trade not provided primarily for the employee’s employment.

If the items are infrequent, irregular and valued at less than $300 (GST inclusive) quite possibly there
will be no fringe benefit implications

Entertainment                                                                                                 Yes   No

Do you provide any form of entertainment to an employee (or his/her associate).                                    

Some examples are:

Business lunches and drinks, staff social functions such as Christmas parties, Friday night drinks, tickets
to sporting events and theatre, accommodation and travel in connection with entertaining clients, game
of golf or similar leisure activities.

The following items are not entertainment:

Tea, coffee and other such amenities provided on business premises
Light refreshments on business premises such as morning/afternoon teas or meals (not including
alcohol) in connection with meetings, training sessions, overtime work etc, food and drink provided
during a conference, accommodation for a conference
Other                                                                                                         Yes   No

Did your organisation provide any other type of benefit to an employee (or his/her associate) which has            
not been disclosed above (eg any assets available for private use or providing services)?
Did your organisation provide accommodation to an employee (or his/her associate)?                                 

Did your organisation pay an allowance to any employee as compensation for living away from home?                  

Did your organisation pay for any expense (eg fuel & oil, subscriptions to clubs, rent on accommodation,
private telephone etc) on behalf of an employee (or his/her associate)?                                            

Did your organisation reimburse an employee (or his/her associate) for any private expenses (eg
restaurant meals)                                                                                                  

If you answered Yes to any of the above please contact our office so we can assist in determining if you
have provided any fringe benefits.

If you are already registered for FBT we will be sending out our customised checklists soon.

MYOB Accounting News

MYOB has announced that it will be changing the name of its most popular accounting products to AccountRight. The new
AccountRight names will be introduced with the 2010 feature release which is scheduled to be available late March/April.
As you upgrade to the new version all products will become version 19.

                               Formerly                                            New Name
                           MYOB Accounting                               MYOB AccountRight Standard
                        MYOB Accounting Plus                                MYOB AccountRight Plus
                             MYOB Premier                                 MYOB AccountRight Premier
                       MYOB Premier Enterprise                           MYOB AccountRight Enterprise
Standard Business Reporting (SBR)
Current reporting requirements impose a                 providing a single secure online sign-on for
significant burden on business — a burden that          users to all agencies involved.
the Australian Government is committed to re-
ducing.                                              Led by the Australian Treasury, the agencies par-
                                                     ticipating in SBR are the Australian Taxation Of-
Standard Business Reporting (SBR) is an              fice (ATO), the Australian Securities and Invest-
Australian Government initiative to reduce the       ments Commission (ASIC), the Australian Pruden-
business-to-government reporting burden. SBR         tial Regulation Authority (APRA), all State and
has been co-designed by state and territory          Territory Government Revenue Offices (ROs) and
government agencies in partnership with              the Australian Bureau of Statistics.
software developers, businesses and their
accountants, bookkeepers, tax agents and payroll     Some examples of reports SBR is targeting in-
professionals. A multi-agency initiative involving   clude the Business Activity Statement, Financial
12 federal, state and territory government           Statements and Payroll Tax Returns. SBR is ex-
authorities, is aiming to simplify business-to-      pected to save Australian business an estimated
government reporting by:                             $800 million per year once fully implemented
                                                     from July 2010.
   removing unnecessary or duplicated
   information from government forms                 Adoption of SBR will be voluntary and no legisla-
                                                     tive changes will occur as a direct result of the
   using business software to automatically          initiative.
   pre-fill forms
                                                For more information either contact Aimee Camp-
   adopting a common reporting language, based bell or Amalia Caporella of our office or go to
   on international standards and best practice

   making financial reporting a by-product of        Information sourced from web
   natural business processes                        site.

   providing an electronic interface to agencies
   directly from accounting software, which will
   also provide validation and confirm receipt of

                                                               Considered Value Issue 53— March 2010
Brentnalls SA                                         Proposed Land Tax Relief
Chartered Accountants                                 Prior to South Australian State elections, the Labour Government announced a
and Advisors                                          reduction in land tax to apply from 1 July 2010. The proposed legislation will
Partners                                              amend the tax-free land tax threshold from $110,000 to $300,000, adjust the rate
                                                      of tax for land valued between $300,001 and $550,000 down to 0.5% and in-
John Crouch              Craig Farrow                 crease the $750,000 band to $800,000. Reduction in rates will apply pending
Rick Albertini           Karen Nyberg                 election results.

Associates                                                  The current rates are as follows:              The Proposed Rates are as follows

Sharon Lloyd             Shali Manolev
                                                      Taxable Value of Land       Base      Tax per Taxable value of            Base     Tax Per
Renee Feltrin            Matt Holden
                                                                                  Rate       $100 Land                          Rate      $100
Aimee Campbell           Gavin Mitchell
                                                      Value under $110,000         Nil        Nil
Brentnalls SA Advisors Pty Ltd                        110,001-350,000              Nil       0.30     0-300,000                  Nil       Nil
Australian Financial Services Licence Number 264083

Directors                                             350,001-550,000             720+       0.70     300,001-550,000           Nil +     0.50
John Crouch              Craig Farrow
                                                      550,001-750,000            2,120 +     1.65     550,001-800,000         1,250 +     1.65
Rick Albertini           Karen Nyberg
                                                      750,001-1,000,000          5,420 +     2.40     800,001-1,000,000       5,375 +     2.40
255 Port Road
PO Box 174                                            Above 1,000,000           11,420 +     3.70     Above 1,000,000         10,175 +    3.70
                                                      For example, on land value of $550,000 this will equate to a reduction in land tax of
Tel: 08 8241 8444                                     $870 (previously $2,120 proposed $1,250).
Fax: 08 8241 8488
                                                      If you have any questions regarding this matter, please contact our office.
                                                      Small and Unidentifiable Super to be paid to
                                                      The Taxation Laws Amendment (Budget Measures No 2) Act 2009 has recently
                                                      changed the processes in relation to unclaimed superannuation.

                                                      The new law requires superannuation funds to transfer small and unidentifiable lost
                                                      member balances to the Tax Office. The rules apply to accounts where the member
                                                      cannot be found and the balance is less than $200 or where the account has been
                                                      inactive for five years.

                                                      Prior to these new rules, unclaimed monies were only transferred to the Tax Office
                                                      when the member reached 65 or passed away.

                                                      Members will be able to access the unclaimed superannuation from the Tax Office
                                                      either to be paid into a complying superannuation fund or direct to the member if they
                                                      have reached eligibility age.

                                                      Please contact our office for further information.

The information provided in this news-
                                                      Telstra 2010 Business Awards
letter does not constitute advice. The
information is of a general nature only               Nominations for the 2010 Telstra Business Awards are now open. To nominate,
and does not take into account your                   entries must be submitted by 5pm (AEST) 16 April 2010. There are 5 award categories
individual objectives, financial situation            – for further information go to
or needs. It should not be used, relied
upon, or treated as a substitute for

                                                                                              Considered Value Issue 53 - March 2010

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