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 77c per Km

Substantiation required

Exempt Allowances – Motor Vehicle

Example

Fixed allowance amount: $200Business kilometres travelled: 100km

Less exempt component (100km X 77 cents) - $77

Taxable portion of allowance $123

E K RXExemption Rate (77c)Kilometre

Exempt Allowances – Accommodation

$255.45 per night exempt where paid

to the employee

ATO reasonable amounts for daily travel

Room $132.00Incidentals $18.75Meals $104.70

$255.45

Charge-backsReimbursement

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 $255.45

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 $123.45

To declare for payroll tax purposes $26.55

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 2014 – 31 March 2015)

Declare full year’s grossed up FBs(1 April 2015 – 31 March 2016)

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

– Please refer to their relevant websites or contact centres for further information

• There are a number of harmonised exemptions

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

Apprentices

SA NSW TAS VIC

Taxable Taxable# Taxable# Taxable#

QLD NT WA ACT

Exempt# Taxable# Exempt# Taxable (1st year)

#Be mindful that some conditions apply – contact relevant revenue

office for more information

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-012PTA-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 PlanDisability Employment

Rebate SchemeFresh Start Support

Rebate

Small Business Rebate

Film Production Incentives Scheme

Apprentices and Trainees

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

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

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 QLDosr.nsw.gov.au1300 139 815

revenuesa.sa.gov.au08 8204 9880

sro.vic.gov.au13 21 61

osr.qld.gov.au1300 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