March 30th, 2008
FBT or Fringe Benefits Tax is a tax on remuneration to employees (can include the business owner) that is paid in forms other than cash (cash meaning also direct deposit to the employees bank account).
If the employee is paid in cash and other forms (eg reimbursement of expenses before tax) this is commonly referred to as salary packaging.
There are some ways that you can package a salary to reduce the FBT to nil.
For Example:
Superannuation
Pay the employees expenses directly only on items that are specifically exempt from FBT eg One laptop computer per year.
Payments that are otherwise deductible. In other words if the employee could have claimed a tax deduction in their personl tax return then there is no FBT if the employer pays for theses expenese instead.
Employee Contributions. The employee pays money to the employer to reduce to nil the employers liability to pay FBT. This is effective where the employees marginal tax rate is below the highest marginal rate.
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March 18th, 2008
The end of the Fringe Benefits Tax Year is fast approaching. March 31 2008.
Will you owe FBT?
The Tax Office has issue a rough checklist, as a guide only.
I have listed the questions below.
If you are currently an employer this checklist will help you work out if you are providing a fringe benefit to your employees.
If you answer yes to any of the following you may be liable for fringe benefits tax.
Do you make cars or other vehicles owned by the business available to employees for private use including a car garaged at the employee’s home?
Do you provide loans at reduced interest rates to employees?
Have you released an employee from an owed debt?
Have you paid for, or reimbursed, an expense incurred by an employee?
Do you provide a house or unit of accommodation to your employees?
Do you provide employees with living-away-from-home allowances?
Do you provide entertainment by the way of food, drink or recreation to your employees?
Are you a tax-exempt organisation that has provided food, drink or accommodation to employees?
Have you provided property, either free or at a discount, to employees?
Do any of your employees have a salary package arrangement in place?
Have you provided your employees with goods at a lower price than they are normally sold to the public?
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Next time we may discuss how to reduce your FBT to nil even if you answered yes to one or more of the above questions
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Note: Remember to buy your laptop BEFORE March 31 to maximise your tax benefits.
If you are looking for a laptop: http://www.bargainseeker.com.au
Regards,
Glenn Wallace
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March 13th, 2008
I was shocked when I heard earlier rumours that Kevin Rudd was going to renig (the dictionary says its spelled renege ) on an election promise to pay carers bonus.
Anyway there was no need to investigate this as apparently, he has said that he will pay the carer bonus.
News Story
I have great admiration for carers.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
Internet Adviser
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March 13th, 2008
Over the years I have found that there is at least one thing that most people aren’t aware of when they apply for a loan. Even a lot of Mortgage Brokers aren’t aware of it. Knowing this can save tens of thousands of dollars in tax. It is do with maximising the interest deductibilty of the loan when you pay more than the minimum capital repayment and you want to use these extra funds for something else. It has to do with offset accounts and redraws.
I have included a short report with references to a tax ruling, a tax appeals case and a forum post with alot of details about this matter as well as other loan related matters.
I was thinking of charging $47 for this report, but for the moment anyway it is free.
Click Loan Report
Regards,
Glenn Wallace
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March 13th, 2008
Hi. Welcome to taxagents.com.au. This is my newest website. I decided that if I am going to be posting good information to you I may as well get the most leverage and see if the content can attract other vistors searching for tax and business related information on the internet. I believe that a blog is one of the best ways to do this. May I say that wordpress is a great way to do blogging.
Previously I was just sending by emailing, I don’t think that was the best use of my time. Now I will integrate the two.
Anyway we will see how it goes.
Regards,
Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation
Internet Adviser
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