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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. News 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. Relief 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 www.sbr.gov.au making financial reporting a by-product of Information sourced from www.sbr.gov.au web natural business processes site. providing an electronic interface to agencies directly from accounting software, which will also provide validation and confirm receipt of reports 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 HINDMARSH SA 5007 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. Email: email@example.com Website: www.brentnalls-sa.com.au Small and Unidentifiable Super to be paid to ATO 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. Disclaimer 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 www.telstrabusinessawards.com or needs. It should not be used, relied upon, or treated as a substitute for Considered Value Issue 53 - March 2010
"Fringe Benefits Tax _FBT_"