Warning on SMSF asset valuations The ATO has issued a warning to trustees of SMSFs about sloppy valuation practices. ATO data analysis has revealed that over 16,500 self managed superannuation funds (SMSFs) have reported assets as having the same value for three consecutive years. With many of these assets residential or commercial Australian property, you can forgive the ATO for being incredulous. For trustees of SMSFs, where asset values are consistently reported at the same value, it’s likely your SMSF will be flagged for closer scrutiny by the ATO. The value of assets in your SMSF i ..read more

Meal Entertainment 2024 An everyday occurrence across the business landscape in Australia is the practice of taking both existing and potential clients out for a meal to cement the business relationship, with the cost of this meal often covered by one party.    Equally, business owners commonly reward staff by taking high performing employees out for lunch and covering the cost.     Are the cost of these Meals Tax Deductable?   After all, it was a genuine business expense surely, I can claim back the GST and claim a tax deduc ..read more

SHOULD YOU LODGE A FBT RETURN?  Even though Fringe Benefits Tax (FBT) is designed to capture benefits enjoyed by an employee, it is levied on the employer. Unless your employment agreement allows for any FBT that becomes payable to be recouped from the employee, the employer will have no recourse for reimbursement.    So, why should an employer lodge an FBT return where no FBT is payable? Well, for the simple reason that it turns on a three-year deadline for the ATO to commence audit activities.    Without an FBT return being lodged, the A ..read more

What is a Car Fringe Benefit? A car fringe benefit commonly arises when an employer makes a car they own or lease available for the private use of an employee. If you conduct your business through a company or trust, you may be an employee of the company or a trust.     A car is made available for private use by an employee on any day the car:    is used for private purposes by the employee or associate; or  is not at your premises, and the employee is permitted to use it for private purposes; or   is garaged at their place of residence ..read more

Providing Cars to Employees - Tips & Tricks The provision of company cars to employees is a regular practice across the Australian business landscape. Generally, there are two reasons to provide a car to an employee:    It’s a requirement of the job that employees travel regularly for work purposes, so providing a car will allow employees to effectively perform their duties.   employers want to give themselves an advantage over their competitors being ‘employers of choice’, attracting the best and brightest, by converting non-deductible private vehicles to ..read more

On 31 March 2024, the Fringe Benefits Tax (FBT) year ends. With the ever-increasing budget deficits as a result of COVID-19, the ATO will be reviewing whether all employers who should be paying FBT are paying it, and that they are paying the right amount. The ATO has recently announced that the ‘FBT gap’ is now over $1.3 billion and will be deploying resources for FBT compliance to close this gap.    To help you meet your FBT obligations, we’ve put together a list of essentials every employer needs to know about FBT and revie ..read more

Applying the FBT Minour & Infrequent Benefits Exemption COMMON MISTAKES    Many employers are unknowingly falling foul of the FBT regime through an incorrect interpretation of the minor and infrequent exemption allowed for benefits that cost less than $300 (incl. GST). The most prevalent area where employers find themselves in trouble when applying the minor and infrequent exemption is in relation to the provision of ‘Meal Entertainment’.  Meal Entertainment applies predominantly to the provision of food or drinks to employees that are not ..read more

,,,The Fringe Benefit Tax trap The Fringe Benefits Tax year (FBT) ends on 31 March. We explore the problem areas likely to attract the ATO’s attention. Electric vehicles causing sparks In late 2022, the Government introduced a concession that enables employers to provide some electric vehicles to employees without incurring the 47% fringe benefits tax (FBT) on private use. The exemption applies to the use of electric cars, hydrogen fuel cell electric cars or plug-in hybrid electric cars if: The value of the car is below the luxury car tax (LCT) threshold for fuel efficient vehicles ($89,332 f ..read more

On a splendid Friday morning, the 1st of March 2024, the lush greens of the Royal Pines Golf Resort were abuzz, not just with the anticipation of a competitive day of golf but with the spirit of generosity and community. The occasion? Our 3rd annual charity golf day, an event that has become a beacon of hope and support for two remarkable charities: the Perry Cross Spinal Research Foundation and Livin. This year, we raised an astounding $40,000, a testament to the power of collective action and the heart of our community. This year's event was nothing short of spectacular, thanks to the unwav ..read more

,,,The controversial case of the taxpayer who claimed a loss on their home A decision by the Administrative Appeals Tribunal has the tax world in a flurry after the Tribunal found in favour of a taxpayer who sold the apartment she lived in for a loss, then claimed the $265,935 loss in her tax return as a deduction. In this case, the taxpayer successfully argued that the purchase and sale of the apartment was a short-term profit making venture and that the loss generated from this could be claimed as a tax deduction. The tax rules generally allow you to deduct losses that relate to a commercial ..read more