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Webinar 2:
Allowances, FBT, Exemptions and Rebates
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
Agenda
• Taxable wages
• Allowances
• Fringe Benefits Tax (FBT) and payroll tax
– How to declare
– Apportioning fringe benefits across states
• Exemptions
• Rebates
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
Allowances
Taxable
NOT Taxable (unless subject to FBT)
Allowances
Reimbursements*
* substantiated with receipts/claims etc.
Allowances
Specific allowances:
• Motor vehicle
• Accommodation
– Short-term
– Long-term
Exempt Allowances – Motor Vehicle
Must be employee’s own car
Must be for business travel
Exempt up to 68c per Km
Substantiation required
Exempt Allowances – Motor Vehicle
Example Fixed allowance amount: $200 Business kilometres travelled: 100km Less exempt component (100km X 68 cents) - $68 Taxable portion of allowance $132
E K R X Exemption Rate (66c) Kilometre
Exempt Allowances – Accommodation
$280.75 per night exempt where paid
to the employee
ATO reasonable amounts for daily travel
Room $147.00 Incidentals $20.05 Meals $113.70 $280.75
Charge-backs Reimbursement
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 $280.75
To declare for payroll tax purposes $0.00
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 $113.75
To declare for payroll tax purposes $36.25
Living Away from Home Allowance
Normally triggers an FBT liability
DON’T
DOUBLE DECLARE
PTA-005[V2]
Fringe Benefits Tax
Actual or Estimated?
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
Wages – Fringe Benefits
Estimated Method
Declare 1/12th of the grossed up FBs
(1 April 2017 – 31 March 2018)
Declare full year’s grossed up FBs (1 April 2018 – 31 March 2019)
Monthly Returns
Annual Reconciliation
Monthly Returns
Annual Reconciliation
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
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
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 exemption Check with the relevant revenue office
*exemption criteria applies to charitable organisations in the Northern Territory, New South Wales, Victoria and Western Australia **not available in Tasmania
PBI & charitable
organisations*
Public hospitals
Non-profit private
hospitals
Non-profit private schools
Government – local**, Governors and foreign representatives staff
Apprentices
#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
SA NSW TAS VIC
Taxable Taxable#
Rebate*
Taxable#
Taxable#
QLD NT WA ACT
Exempt#
Rebate*
Taxable# Exempt# Taxable (1st year)
Exempt where employee does not take ‘official leave’
Fire and Emergency Services duty
Harmonised Exemptions
Substantiation required
Defence Force Reserves Duty
Leave as a result of membership of Defence Force or Armed Forces
is exempt
Substantiation required
Harmonised Exemptions
Maternity & Adoption Leave
14 weeks full-time or part time equivalent is exempt
Substantiation required
Harmonised Exemptions
PPL Scheme (Cwlth) not taxable
PTA-012 PTA-037
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
Rebates
NSW SA QLD VIC
Apprentices & Trainee Wages Job Action Plan
N/A Apprentice and Trainee rebate
Screen Queensland
State Payroll Tax Rebate
Exemption for out of trade apprentices engaged to
complete the same or similar apprenticeship
ACT TAS WA NT
Concession: Employment of School Leavers with Disability
Rebate Scheme (Apprentices,
Trainees & Youth Employees)
Indigenous Wages Rebate
N/A
For further information, contact the relevant revenue office
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
Further information
payrolltax.gov.au
NSW SA VIC QLD
revenue.nsw.gov.au 1300 139 815
revenuesa.sa.gov.au 08 8204 9880
sro.vic.gov.au 13 21 61
qld.gov.au 1300 300 734
NT TAS WA ACT
treasury.nt.gov.au 1300 305 353
sro.tas.gov.au 03 6166 4400
wa.gov.au 08 9262 1300
revenue.act.gov.au 02 6207 0079