All posts tagged: Fringe Benefit Tax Year End

This is the time where we need to check your expenditure, reconcile your Fringe Benefits Taxation (FBT) and confirm any liabilities that are required to meet the Australian Taxation (ATO) Guidelines for your employer.

The next few weeks will be one of complying to the rules and regulations set out by the ATO and the FBT reports will be sent to your employer for processing.

We need you to make sure that you have submitted your vehicle odometer reading. This allows us to make sure that your expenditure meets with your budget for the 2016/17 year. This could also mean that we need to adjust your current Salary Packaging requirements to meet your actual spending.

Whilst we close off on the FBT Year 2016/17, we begin the 2017/18 FBT Year.

The ATO have changed and overhauled the rules on:

– Entertainment and meals expenses. This affects the FBT – rebatable and the FBT – Exempt Employers only.
– Uber Travel from Home to Work attracts FBT. So be careful, Uber is ineligible for FBT Exemption as the vehicle being used will not represent a “Vehicle that is licensed to operate as a taxi”.

There are also a number of other changes regarding employer based business (Non Salary Packaging) that come into effect as well.

The FBT year also heralds a new enhancement for JBS Salary Packaging as we are moving our systems to online. This means you will be able to have access to your balances, activity statements and the opportunity to calculate the benefits you can receive by changing the way of adding items such as mobile phones, internet, purchases of IPADS, notebooks and computers to your salary sacrifice arrangements.

We are excited to have this ability as it will assist in our clients being better informed and to have real time access to what is happening with their Salary Packaging Account.

If you have not sent through your Odometer Reading please email belkins@jbssalarypackaging.com.au to complete ASAP.

The Fringe Benefits Tax (FBT) year is different to a standard financial year and runs from 1 April to 31 March each year. So what does that mean for those of you that have salary packaging arrangements? You will have to gather the relevant information together and ensure that all kilometres have been run if you have a motor vehicle or that your employer has withheld enough from your wages as part of your package to cover any FBT payment.

If you have a car salary packaged then you’ll need to get your odometer reading in on the 31st March to your provider. And while there is no longer tax scales dependant on the kilometre travelled, it is still required to ensure that your package has been calculated correctly and that the relevant FBT is payable. It helps to ensure that the kilometres match the fuel costs to match your budget so make sure you get this in ASAP. Many providers, including JBS Salary Packaging will accept a photo of your odometer reading as proof.

Did you also know that your FBT calculations on your motor vehicle can change depending on the vehicle availability during the FBT year. So if you were unable to use your car in any period during the FBT year, like if it was with a mechanic getting repaired, you’ll need to let JBS know.

Changes to the Australian Taxation Laws for FBT
The Tax office made changes to the Car Expense Deductions and the Meal Entertainment Benefit rules, with a summary of the details as follows:

Car Expense Deductions
Simply put, you have one of only two options in calculating your deduction. (1) use a single rate of $0.66 per kilometre for all motor vehicles regardless of engine size up to a maximum of 5,000 business kilometres for each car or (2) the logbook method of recording your travels including odometer readings for a minimum continuous period of 12 weeks.

It should be noted that your first trip of the day from home to the first business call is considered private use, and the same with your last trip from a business to home. You might want to arrange your diary and daily appointments to take this into consideration and gain the highest level of business kilometres usage.

Meal Entertainment Benefits
If you are one of the lucky employees who have the opportunity to claim a Meal Entertainment Benefit through Salary Packaging with your employer (Government Department and/or Organisation, Not for Profit or exempt Business), from 1 April 2016, the Reportable Cap has been set to $5,000 per annum. Any claims above the $5,000 will be counted towards the employee FBT commitment. So be aware as a good meal could cost you in FBT.

If you’re with JBSSP, we will have already taken these changes into consideration as part of your package however if you are concerned how these changes may affect you, contact our office for a chat.