http://www.crikey.com.au/2009/06/18/tips-and-rumours-37/ now with extra source Sat, 11 Feb 2012 13:13:23 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.crikey.com.au/2009/06/18/tips-and-rumours-37/#comment-28867 Scott Thu, 18 Jun 2009 04:57:17 +0000 http://www.crikey.com.au/2009/06/18/tips-and-rumours-37/#comment-28867 Re Fairfax FBT...Reporting it on your payment summary only occurs if an individual has recorded a Total Fringe Benefit of over $2000. Unless Fairfax is giving out Penfolds Grange (unlikely), not a lot of people will hit that sort of threshold. FBT is there mainly to stop businesses from paying their employees in contra deals rather than salary. i.e An employee may say cut my salary to under $70,000, but pay for my overseas holidays, private school fees for my kids etc. Means that the employee might effectively be earning $90,000 but the tax department only gets their cut from $70,000. Good for the employee, not so good for the ATO. Hence FBT was introduced to try and discourage it. Bitch about Fairfax management all you like, but this one is more about the ATO as Michael pointed out. Re Fairfax FBT…Reporting it on your payment summary only occurs if an individual has recorded a Total Fringe Benefit of over $2000. Unless Fairfax is giving out Penfolds Grange (unlikely), not a lot of people will hit that sort of threshold.
FBT is there mainly to stop businesses from paying their employees in contra deals rather than salary. i.e An employee may say cut my salary to under $70,000, but pay for my overseas holidays, private school fees for my kids etc. Means that the employee might effectively be earning $90,000 but the tax department only gets their cut from $70,000. Good for the employee, not so good for the ATO. Hence FBT was introduced to try and discourage it.
Bitch about Fairfax management all you like, but this one is more about the ATO as Michael pointed out.

]]> http://www.crikey.com.au/2009/06/18/tips-and-rumours-37/#comment-28859 Michael Ward Thu, 18 Jun 2009 04:29:26 +0000 http://www.crikey.com.au/2009/06/18/tips-and-rumours-37/#comment-28859 Re Fairfax FBT: Fairfax are probably correct... the prize is likely subject to FBT. It is not a case of 'management' making it so, its the FBT legislation and ATO interpretation of same. Re Fairfax FBT: Fairfax are probably correct… the prize is likely subject to FBT. It is not a case of ‘management’ making it so, its the FBT legislation and ATO interpretation of same.

]]>