FBT technical updates

R.E.M has considered the following aspects of FBT  to help you when preparing your 2019 FBT return or understanding your FBT obligations:

• Taxi travel is exempt from FBT in certain situations, including travel beginning or ending at the workplace (includes daily commute). Unfortunately Uber travel is not FBT exempt, as ATO have not confirmed Uber is a taxi service which had been expected.
• The rewrite of car parking rules have still not been finalised (started in 2014). Consider market valuation of commercial parking within a 1km radius of the premises on which the car is parked to significantly reduce FBT liability.
• Where travelling on business, all meals (including alcohol), regardless of how extravagant, are considered sustenance. Sustenance = no FBT, claim GST in full and fully deductible for income tax purposes.
• Expected minor benefit safe harbour guidance has still not been published by ATO. To qualify for exemption, benefit must be minor (less than $300 including GST), infrequent and irregular.  It should be noted that frequency and value are considered linked, such that a $50 irregular benefit given 20 times in the year may be considered infrequent but a $299 irregular benefit given 13 times may be considered frequent and the exemption would not apply.
• The travel expenses, living away from home rulings are expected to be reformed. Until now, where you travel on business for more than 21 days, it would be considered living away from home (LAFH). Once into LAFH territory, unless you meet strict criteria of LAFH exemption, all travel expenses (flights, hotels, meals) would be taxable as a fringe benefit.

R.E.M has considerable experience in FBT. Please contact us if you need help in navigating FBT.