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Integrity, Innovation & Commitment
FBT Compliance focus for 2017

FBT Compliance focus for 2017

  • Friday, 07 April 2017 05:12

ATO Assistant Commissioner Catherine Willis recently outlined several matters that should be kept in mind when preparing 2017 FBT returns.

The Assistant Commissioner said that the ATO's compliance focus would include:

  • car benefits - in particular the private use of employer-provided motor vehicles;
  • correct calculation and reporting of living-away-from-home allowance (LAFHA) – common errors include claiming reductions for ineligible employees, failing to obtain required declarations from employees and failing to substantiate expenses;
  • incorrect claiming of FBT exemption or FBT rebate by ineligible employers;
  • employee reward programs in particular to directors and whether some of the rewards provided are in fact salary and wages rather than benefits;
  • housing benefits; and
  • benefits provided to directors of private companies.

Legislative changes applying from 1 April 2016, include:

  • a new small business concession for work-related portable devices which allows an exemption for multiple similar items in the same FBT year;
  • a new limit on concessional treatment of salary packaged meal entertainment benefits for not-for-profit employers;
  • the requirement for all employers to report salary packaged entertainment benefits on employee payment summaries; and
  • a single basic car rate of 66 cents per kilometre will apply to all cars for the purposes of the otherwise deductible rule for business use of employee cars.

 

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