Monthly Archives: April 2023

Is your ute or van subject to FBT?

Is your ute, van or workhorse vehicle subject to Fringe Benefits Tax (FBT)?

Workhorse vehicles have always been treated favourably.

However the ATO now has safe harbour provisions which you need to test against.

If those safe harbour provisions are satisfied for each vehicle, then no FBT is payable.  This means that you have to have the necessary proof and declarations.

If those safe harbour provisions are not satisfied, then you will have a very hard time forming an opinion that FBT does not apply.

So that you can better understand your position, you can read more by clicking on the following link – click here.

This matter has become even more important pursuant to the ATO’s more aggressive approach in reviewing car claims and employer provided cars.

We welcome any question you may have.

 

Important SG super & payroll reminders

With the end of the March quarter comes some important SG super and payroll reminders.

Friday 28th April is the end date for satisfying Super Guarantee (SG) super obligations for the March 2023 quarter.

But beware as some of the clearing houses have a submission and payment deadline well before then.  May be even next Tuesday!

SG super is payable on all forms of remuneration including:-

  • Commissions
  • Bonuses (but see below)
  • Directors’ fees and all other forms of remuneration to directors
  • Allowances (except where fully expended)
  • Contractors paid mainly for their labour

But excluding the following remuneration:-

  • Overtime
  • Reimbursements
  • Unused annual leave on termination
  • Bonuses that are only in respect of overtime
  • Bonuses that are ex-gratia but have nothing to do with hours worked (which is harder to satisfy than what you might think)
  • Employees carrying out duties of a private or domestic nature for less than 30 hours in a week (such as nannies)
  • On quarterly remuneration greater than $60,220
  • Non-residents performing work for an Australian business outside Australia

If your payroll system has been set up correctly then it will perform these calculations for you.  We would welcome the opportunity to assist you with this and if need be refer you to a good book-keeper.

SG super should never be paid late as late payments attract substantial interest and penalties.  Furthermore, and SG (and BAS) liabilities that remain unreported and unpaid after 3 months become personal debts of directors.

So if you haven’t paid your employer super obligations already, we recommend doing so today!

We take this opportunity to remind you of the following matters:-

  • The SG rate is currently 10.5%.
  • We are currently following up any employing clients who have not returned their 2023 FBT questionnaire.  You can read more in our email to employers of 31st March.
  • Single Touch Payroll disclosures will be increase under what is called STP2.  Your software provider will have and will continue to be in touch about what needs to be done – but please note their extensions are about to run out and you soon need to be fully compliant.
  • Be very wary of this as STP2 permits Fair Work Australia to follow up any non-compliance, particularly in respect of under paid wages.
  • Please be mindful that there is no longer a $450 threshold.

As always, we welcome your calling us to ask any question you may have.