The flip side of dispelling myths about FBT is that there are also opportunities, provided you manage your FBT obligations properly.
Moving an employee from one location to another? Then, there are some FBT breaks to help. There are a number of items that are completely excluded from FBT or where the taxable value is reduced if certain conditions are met:
- Relocation consultants to help employees move to a new location by organising removalists, finding accommodation, providing school information etc.
- The costs of removal and storage of household effects.
- The incidental costs of selling the employee's home and buying a new one in the new location such as stamp duty, advertising, legal expenses, agent commission, discharge of a mortgage, borrowing expenses and other similar capital expenses.
- The costs of connecting or reconnecting gas, electricity and telephone services to the new place of residence or the former place of residence.
- Temporary accommodation, including the costs of acquiring household goods.
- Visa application fees and associated medical examination costs.
A number of conditions apply but if they are met, the tax savings can be well worth the effort. Make sure you get advice before acting
If your spouse comes with you to a work conference, the cost of the conference accommodation is not subject to FBT as long as there are no additional charges. For example, where the hotel room is sold on a per room basis. If however, there is an additional person charge, FBT applies to just that additional room cost.
While FBT generally applies to work vehicles, if the motor vehicle is a ute, panel van, or any other vehicle designed to carry less than one tonne and not designed principally to carry passengers, then it might be exempt from FBT. For example, a ute could be garaged at an employee's home without incurring FBT if the personal use of the ute was only incidental.
Employees can salary sacrifice the cost of a laptop computer and software as long as it is predominantly used for work purposes without incurring FBT. The exemption is limited to one laptop per employee per year and means that the laptop is purchased using pre tax income.
For more information, please contact us on 02 9957 4033 or email our team.
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Last updated April 2013. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.