webinar 2: allowances, fbt, exemptions and rebates · 2016. 9. 7. · webinar 2: allowances, fbt,...
TRANSCRIPT
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Webinar 2:
Allowances, FBT, Exemptions and Rebates
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Payroll Tax Webinars
Webinar One Understanding the basics –what it is, how it works
Webinar Two Allowances, FBT, exemptions and rebates
Webinar Three Contractors
Webinar Four Groupings
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Agenda
• Taxable wages
• Allowances
• Fringe Benefits Tax (FBT) and payroll tax
– How to declare
– Apportioning fringe benefits across states
• Exemptions
• Rebates
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What is Taxable? A quick recap
Liable Wages
Salaries & Allowances
Apprentice payments
(not all jurisdictions)
Leave
Super, bonuses &
commissions
Fringe benefits
Termination payments
Shares & Options, & Directors
Fees
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Allowances
Taxable
NOT Taxable (unless subject to FBT)
Allowances
Reimbursements*
* substantiated with receipts/claims etc.
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Allowances
Specific allowances:
• Motor vehicle
• Accommodation
– Short-term
– Long-term
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Exempt Allowances – Motor Vehicle
Must be employee’s own car
Must be for business travel
Exempt up to 66c per Km
Substantiation required
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Exempt Allowances – Motor Vehicle
Example
Fixed allowance amount: $200Business kilometres travelled: 100km
Less exempt component (100km X 66 cents) - $66
Taxable portion of allowance $134
E K RXExemption Rate (66c)Kilometre
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Exempt Allowances – Accommodation
$257.95 per night exempt where paid
to the employee
ATO reasonable amounts for daily travel
Room $132.00Incidentals $19.05Meals $106.90
$257.95
Charge-backsReimbursement
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Exempt Allowances – Accommodation
Example 1
Mr Beard travels from Adelaide to Melbourne to attend a work meeting and is required to stay overnight. He is paid a daily allowance of $250 to cover room, meals and incidentals.
Allowance $250.00
Less exempt amount $257.95
To declare for payroll tax purposes $0.00
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Exempt Allowances – Accommodation
Example 2
Mr Beard travels from Adelaide to Melbourne to attend a work meeting and is required to stay overnight. His employer organises and pays for his accommodation, however he is paid a daily allowance of $150 to cover meals and incidentals.
Allowance $150.00
Less exempt amount for meals and incidentals $125.95
To declare for payroll tax purposes $24.05
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Living Away from Home Allowance
Normally triggers an FBT liability
DON’T DOUBLE DECLARE
PTA-005[V2]
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Fringe Benefits Tax
Actual or Estimated?
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Wages – Fringe Benefits
Actual Method
Calculate the grossed up fringe benefits each calendar month and declare that amount in each monthly return
= (Type 1 + Type 2 benefits) x Type 2 rate
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Wages – Fringe Benefits
Estimated Method
Declare 1/12th of the grossed up FBs (1 April 2015 – 31 March 2016)
Declare full year’s grossed up FBs(1 April 2016 – 31 March 2017)
Monthly Returns
Annual Reconciliation
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Fringe Benefits & Payroll Tax
Declare the relevant component of the total Fringe Benefits provided in each state
$750,000
$250,000
Australian Wages
VictorianWages
SouthAustralianwages
75%
25%
Total Fringe Benefits
% declaredin Vic
% declaredin SA
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Exemption & Payments not Liable
Exemptions
• Each jurisdiction has various employee and employer based exemptions
• There are a number of harmonised exemptions
Please refer to your relevant websites or contact centres for further information
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Exempt Employers
PBI & charitable
organisations*
Public hospitals
Non-profit private
hospitals
Non-profit private schools
Government – local**, Governors and foreign representatives staff
In some states you need to apply for an exemptionCheck with the relevant revenue office
*exemption criteria applies to charitable organisations in the Northern Territory, Victoria and Western Australia**not available in Tasmania
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Apprentices
SA NSW TAS VIC
Taxable Taxable#
Rebate*
Taxable# Taxable#
QLD NT WA ACT
Exempt#
Rebate*
Taxable# Exempt# Taxable (1st year)
#Be mindful that some conditions apply – contact relevant revenue
office for more information
*Rebate may also be available -contact relevant revenue office
for more information
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Exempt where employee does not take ‘official leave’
Fire and Emergency Services duty
Harmonised Exemptions
Substantiation required
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Defence Force Reserves Duty
Leave as a result of membership of Defence Force or Armed Forces
is exempt
Substantiation required
Harmonised Exemptions
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Maternity & Adoption Leave
14 weeks full-time or part time equivalent is exempt
Substantiation required
Harmonised Exemptions
PPL Scheme (Cwlth) not taxable
PTA-012PTA-037
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Worker’s Compensation
Harmonised Exemptions
Valid work cover claim lodged?
Compensation amounts exempt
Top-up pay taxable
Week 1 and week 2 compensation deemed to have been received
PTA-015
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Rebates
NSW SA QLD VIC
Apprentices & Trainee Wages
Job Action PlanDisability Employment
Rebate SchemeFresh Start Support
Rebate
Small Business Rebate
Film Production Incentives Scheme
Apprentices and TraineesAdvance Queensland
Industry Attraction Fund (Dept. State Development)
N/A
ACT TAS WA NT
Concession: Employment of School Leavers with Disability
Employment Incentive Scheme (EISPR4)
Indigenous Wages Rebate
N/A
For further information, contact the relevant revenue office
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Payroll Tax Webinars
Webinar One Understanding the basics –what it is, how it works
Webinar Two Allowances, FBT, exemptionsand rebates
Webinar Three Contractors
Webinar Four Groupings
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The Basics | Registration | Registration – Employing in Multiple Jurisdictions Grouping | Employee or Contractor? | Contractor Exemptions
Understanding the Annual Deduction EntitlementLodging your Annual Return | Lodging your Monthly Return
Educational Videos
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Further information
payrolltax.gov.au
NSW SA VIC QLDosr.nsw.gov.au1300 139 815
revenuesa.sa.gov.au08 8204 9880
sro.vic.gov.au13 21 61
qld.gov.au/osr1300 300 734
NT TAS WA ACTtreasury.nt.gov.au
1300 305 353sro.tas.gov.au03 6166 4400
osr.wa.gov.au08 9262 1300
revenue.act.gov.au02 6207 0079