FBT 2015 WHAT S NEW FOR FBT IN 2015?... 1

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1 WHAT S NEW FOR FBT IN 2015? NEW FBT rate and gross-up rates for the 2015 FBT year New FBT gross-up rates apply for the 2015 FBT year Applying the new FBT rate and gross-up rates when calculating an employer s 2015 FBT liability How will the new FBT rate and gross-up rates affect salary packaging arrangements? Common questions associated with the changes to the FBT rate and gross-up rates Further changes to the FBT and gross-up rates for the 2016 and 2017 FBT years! FBT rate and gross-up rates increased for the Budget Repair Levy How will the changes affect FBT-exempt and FBT-rebatable employers? Salary packaging to defeat the new Budget Repair Levy! LANDMARK decision highlights FBT jolt for cars parked at airports When does a car parking benefit arise under the FBT legislation? Facts in the Qantas case Qantas argues that car parking fringe benefits do not arise to employees ATO s argument with respect to FBT being payable on the car parks provided by Qantas The Tribunal s decision in the Qantas case Federal Court s decision in the Qantas case Are employers located near shopping centres (that charge penalty rates) liable for FBT on car parking? ATO confirms massive FBT back flip on employer contributions to staff social clubs ATO releases Draft Taxation Ruling TR 2014/D1 on FBT and contributions to an employee benefit trust FBT consequences of employer contributions to a staff social club Recent decisions highlight FBT minefield with employers providing meal entertainment Recent ATO guidelines highlight FBT sting with meal entertainment and car parking Income tax and GST issues associated with car parking and meal entertainment National Tax & Accountants Association Ltd: February March

2 5.3 Recent decision confirms FBT jolt for employers who are reimbursed for entertainment costs Summary of function-related expenses included in the definition of meal entertainment LATEST developments with employees who are travelling, LAFH or relocating NTAA table summarises the factors for employees travelling on work, LAFH or relocating ATO decision confirms that FBT concessions can be claimed for employees who voluntarily relocate Recent ATO decision confirms that FBT concessions can be claimed for new employees ATO decision confirms FBT windfall for retailers & wholesalers providing benefits ATO ID 2010/135 concludes that an in-house property benefit does not arise ATO confirms that a voucher/coupon qualifies as an in-house property fringe benefit ATO ID 2014/ When can the minor benefit exemption apply to a gift card provided to an employee? Who s under the ATO s audit microscope in 2015? Audit crackdown on employer errors with pooled and shared cars ATO targets employees taking an overseas/interstate holiday after attending a business conference FBT issues with spouses and family members accompanying an employee on a conference Other developments in the 2015 FBT year FBT rate and gross-up rates for 2015 FBT year Capping thresholds for 2015 FBT year Hospitals, PBIs, rebatable employers, etc Certain FBT exemptions and reductions threshold amounts for the 2015 FBT year FBT reportable benefits threshold for 2015 FBT year Benchmark interest rate for 2015 FBT year Reasonable food and drink component of LAFHAs (within Australia) for the 2015 FBT year Non-remote area housing indexation factors Car parking threshold from 1 April National Tax & Accountants Association Ltd: February March 2015

3 9.9 Taxable value of motor vehicles which are not cars Record-keeping exemption threshold for 2015 FBT year MEAL ENTERTAINMENT MAKING IT SIMPLE! Introduction The concept of entertainment The fundamentals of when the provision of food and drink is meal entertainment Factors in deciding if food/drink is meal entertainment NTAA s comprehensive meal entertainment checklist Methods for valuing meal entertainment Valuing meal entertainment the actual method Valuing meal entertainment the 50/50 split method Comparison between using the actual method and the 50/50 split method Practical meal entertainment case studies for FBT-taxable employers Christmas parties and end of financial year functions Food and drink provided to an employee on overnight business travel Dealing with corporate sponsorships be aware of the traps! Common entertainment issues for tax-exempt employers What is a tax-exempt employer? The FBT, income tax and ITC implications of providing a tax-exempt body entertainment fringe benefit Frequently asked questions and answers CAR FRINGE BENEFITS: NO MESS, NO FUSS AND NO MISTAKES! Understanding the fundamentals of car benefits When does a car fringe benefit arise? When will the provision of a vehicle (not being a car) be subject to FBT? Summary of circumstances where the car fringe benefit rules don t apply National Tax & Accountants Association Ltd: February March

4 2. ATO set to put the audit blowtorch on the Statutory Formula Method How is the taxable value calculated under the SFM? Applying the statutory fraction under the SFM Calculating the base value of a car Determining the days available for private use Recipient s payments An audit proof guide to calculating FBT under the Operating Cost Method How to calculate taxable value using the Operating Cost Method Electing to use the Operating Cost Method Determining operating costs under the Operating Cost Method Calculating business use percentage How to identify if a car fringe benefit is a Type 1 or Type 2 benefit Summary table for classifying car fringe benefits An NTAA guide to luxury cars and FBT Claiming input tax credits with respect to a luxury car Claiming depreciation on a luxury car Interest deductions on a leased luxury car Issues at the end of a luxury car lease The FBT treatment of luxury cars Calculating the salary sacrifice amount where an employee packages a luxury car AN ESSENTIAL FBT GUIDE TO HIRING AND FIRING STAFF Introduction Develop an employer salary packaging policy How does salary packaging affect employer obligations for employees? Dealing with the affect of salary packaging on annual and long service leave How does salary packaging affect an employee s super guarantee support from their employer? How are termination entitlements calculated when an employee terminates employment? National Tax & Accountants Association Ltd: February March 2015

5 2.4 Comprehensive state-by-state guide on the payroll tax and Workcover effects of salary packaging A guide to calculating the salary sacrifice amount for commonly provided benefits What FBT and salary packaging paperwork is essential for employees who are leaving Recovering salary packaging shortfalls on termination Repaying salary packaging surpluses with final payment on termination Salary packaging and FBT planning techniques in Introduction Fundamentals of salary packaging Establishing an effective salary sacrifice agreement Essential clauses that should be contained in all salary sacrifice agreements Salary packaging opportunities for employees earning less than $80, Massive tax savings for employees earning at least $50,000 who package a car ATO confirms double dip for employees claiming car expenses reimbursed by their employer! Huge savings for employees of hospitals, sporting clubs and charities Don t miss out Cutting edge salary packaging techniques for executives, directors and senior staff Executive salary packaging into superannuation under NEW rules save $ 000s Salary packaging weddings, birthdays, anniversaries and holidays can literally save $ 000s ATO confirms employees can salary package rental property expenses to beat the GST Notes National Tax & Accountants Association Ltd: February March