What this Ruling is about 1. This Ruling deals with the circumstances where work related clothing, uniform and footwear expenses, including associated maintenance costs, are allowable as deductions under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997). 2. It also discusses any fringe benefits tax liability on employers under the Fringe Benefits Tax […]
Learn MoreWhat this Ruling is about 1. This Ruling is about the taxation consequences of insurance companies providing interest free or low interest loans to insurance agents or employees of insurance agents where the loans are used wholly or partly for private purposes. Ruling 2. If an interest free or low interest loan is provided by […]
Learn MoreWhat this Ruling is about 1. This Ruling explains the difference between an allowance and a reimbursement for the purposes of determining whether a payment is a fringe benefit under the Fringe Benefits Tax Assessment Act 1986 ("FBTAA"), or whether that payment is assessable income under the Income Tax Assessment Act 1936 ("ITAA"). Other than living-away-from-home allowances, most allowances […]
Learn MorePREAMBLE Recently, articles have appeared in newspapers and business magazines describing what has been called "a company car plan" to beat fringe benefits tax. The plan is centred on a prestige car being provided for the private use of an employee. The provision of a car is a component of the employee's overall remuneration package […]
Learn MorePREAMBLE This Ruling considers whether it is acceptable for income tax purposes for administration entities set up to provide administration services to professional practices to provide cars and other fringe benefits to employee/partners i.e., employees of the administration entity who are also partners in the professional practice entity. The same question arises with combined administration/service […]
Learn MoreWhat this Ruling is about 1. This Ruling discusses:(a)whether expenditure incurred by a taxpayer in providing morning and afternoon teas and light meals for the taxpayer, the taxpayer's employees and their associates, and visitors to the taxpayer's premises is:(i)'in respect of the provision of entertainment' and therefore precluded by subsection 51AE(4) of the Income Tax Assessment […]
Learn MoreWhat this Ruling is about 1. This Ruling considers whether journal entries in an employer's accounts can be a payment of a 'recipients contribution', 'recipient's payment' or 'recipients rent' under the Fringe Benefits Tax Assessment Act 1986 . Ruling 2. Journal entries in an employer's accounts are a payment of a 'recipients contribution', 'recipient's payment' or 'recipients […]
Learn MorePREAMBLE Fringe benefits tax is payable by employers on the total taxable value of fringe benefits, such as free or subsidised transport, meals and accommodation, that employers provide to employees or associates of their employees. Some benefits provided to employees who work in designated remote areas of Australia are, however, either exempt from the tax […]
Learn MorePREAMBLE Section 62 of the Fringe Benefits Tax Assessment Act 1986 (the Act) provides for the first $500 of the aggregate taxable value of certain in-house fringe benefits relating to an employee in any year to be exempt from tax. 2. This office has been asked whether the exemption of the first $500 includes benefits […]
Learn MorePREAMBLE This Ruling addresses the operation and application of the FBT travel diary requirements. An employee must keep and give his employer a travel diary in situations where the employer pays or reimburses the employee's expenses of travel outside Australia, in order that the employer can claim a reduction in the taxable value of the […]
Learn MorePREAMBLE Under Division 2 of Part III of the Fringe Benefits Tax Assessment Act 1986 (the "Act") a liability for FBT arises where, broadly, an employer's car is used by an employee or associate for private purposes or is available for their private use. 2. The purpose of this ruling is to detail when the […]
Learn MorePREAMBLE Generally, a taxable car benefit arises for FBT purposes where an employer's car is used by an employee or associate for private purposes or is available for their private use. As detailed in Ruling MT 2027, travel between an employee's residence and place of employment would ordinarily constitute private use for these purposes. 2. […]
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