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 66c per Km
Substantiation required
Exempt Allowances – Motor Vehicle
Example
Fixed allowance amount: $200Business kilometres travelled: 100km
Less exempt component (100km X 66 cents) - $66
Taxable portion of allowance $134
E K RXExemption Rate (66c)Kilometre
Exempt Allowances – Accommodation
$257.95 per night exempt where paid
to the employee
ATO reasonable amounts for daily travel
Room $132.00Incidentals $19.05Meals $106.90
$257.95
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 $257.95
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 $125.95
To declare for payroll tax purposes $24.05
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 2015 – 31 March 2016)
Declare full year’s grossed up FBs(1 April 2016 – 31 March 2017)
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 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#
Rebate*
Taxable# Taxable#
QLD NT WA ACT
Exempt#
Rebate*
Taxable# Exempt# Taxable (1st year)
#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
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 TraineesAdvance Queensland
Industry Attraction Fund (Dept. State Development)
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
The Basics | Registration | Registration – Employing in Multiple Jurisdictions Grouping | Employee or Contractor? | Contractor Exemptions
Understanding the Annual Deduction EntitlementLodging your Annual Return | Lodging your Monthly Return
Educational Videos
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
qld.gov.au/osr1300 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