NTLG FBT Sub-committee

View meeting updates below:

  • NTLG FBT Sub-committee meeting on 8 August 2013

    On 8 August 2013, Kylie Rusten (Ernst & Young) and Elizma Bolt (Deloitte) attended the final National Tax Liaison Group (NTLG) FBT Sub-committee meeting as representatives of the Institute.

    Key issues discussed included:

    • The draft tax determination dealing with ‘Is a local hospital network a “public hospital” for the purposes of s 57A of the FBTAA?’ has been referred back to the Public Rulings Panel for consultation. The next Panel meeting is September 2013.
    • The proposed reforms to the FBT treatment of cars was briefly discussed, although general consensus is that it is now a wait and see scenario until after the Federal election on September 7.
    • Treasury has published information about the transitional arrangements for salary packaged in-house benefits on their website, titled ‘In-house Fringe Benefits - transitional arrangements.’ In this information, Treasury has confirmed that the transitional rules for salary sacrifice arrangements entered into prior to 22 October 2012 will be available until 31 March 2014.
    • The ATO have acknowledged that there have been some issues with respect to their new look website, particularly around broken lines. If you are trying to access the FBT; a guide for employers booklet, this can be accessed through the ATO's legal database.
    • The ATO confirmed that in order for information to constitute a valid log book for car fringe benefits, the information does not have to be maintained in the same document. The important thing is that all of the information required to be a valid log book must be obtained and must be made available in the event of an audit.
    • Compliance activity - the ATO is continuing to undertake data matching activities using third party data to identify those outside the FBT system. On 15 July 2013, the ATO issued 10,000 letters to employers that may have an FBT obligation in respect of a motor vehicle registered in a business name. The ATO will also be following up on 19,000 cases of late and non lodgement of FBT returns and will be much more strict in applying penalties and/or prosecuting.
    • There was a lot of discussion around transitioning from the NTLG FBT Sub-Committee to a technical working group. From 1 July 2013, FBT issues should now be submitted to the technical working group initially via email until the FBT working group web page is finished. The format should remain the same. The ATO will then review the issue and draft the necessary response. If the ATO feel that they need to consult on the issue, they will consult with the working group committee (or the hub). The hub will initially be the NTLG members but may also later be expanded to include members from the broader profession. Once finalised the ATO FBT web page will list the issues currently being considered and those issues that have already been addressed. The addressed issues will also include links to ATO ID's, Rulings and Determinations etc where relevant. Members also discussed including a subscription function to the website so people can subscribe the regular alerts on changes to the issues raised.

    For further information on the meeting, please refer to the agenda from the meeting held 8 August 2013. The formal minutes of the meeting will be published on the ATO website in due course.

  • NTLG FBT Sub-committee meeting on 16 May 2013

    On 16 May 2013, Paul Ellis (Ernst & Young) attended the National Tax Liaison Group (NTLG) FBT Sub-committee meeting as representatives of the Institute.

    Key issues discussed included:

    • With the Medicare levy set to increase to 2% from 1 July 2014 to fund the National Disability Scheme, the ATO confirmed that the FBT rate will increase to 47% from 1 April 2014.
    • The potential overlap between FBT and employee share scheme taxation in relation to certain employee share options, identified as a result of ATO ID 2012/68, has been referred to the TIES register for resolution.
    • The ATO confirmed that different treatment will apply in relation to the statutory food amounts from 1 October 2012 under the new living away from home allowance (LAFHA) rules. More detail is set out in the revised Chapter 11 of the ATO's FBT Guide for Employers.
    • Further discussions took place regarding the profession's dissatisfaction with the existing FBT Lodgement Program.
    • Administrative arrangements for unlegislated FBT changes dealing with in house and airline fringe benefits were outlined.
    • Some further issues identified with the new LAFHA changes applicable from 31 October 2012 were discussed.
    • Issues in relation to the s 58X exemption for portable electronic devices and continuing technology convergence were discussed.
    • The application of the operating cost method for valuing car benefits where multiple users have maintained multiple log books was addressed.
    • Valuation issues in relation to in house benefits and the average cost method for valuing car parking benefits were considered.

    For further information on the meeting, please refer to the agenda from the meeting held 16 May 2012. The formal minutes of the meeting will be published on the ATO website in due course.

    The next meeting will be on 8 August 2013. If members have any issues they would like raised, please email them to the Tax Group.

  • NTLG FBT Sub-committee meeting on 14 February 2013

    On 14 February 2013, Paul Ellis (Ernst & Young) and Elizma Bolt (Deloitte) attended the National Tax Liaison Group (NTLG) FBT Sub-committee meeting as representatives of the Institute.

    Key issues discussed included:

    • Do employees working on a 9-day fortnight satisfy the requirements of the fly-in-fly-out and drive-in drive-out rules contained in paragraph 31E(a)(i)?
    • Living-away-from-home reasonable food component
    • Cash allowances v Living-away-from-home allowances
    • Relocation transport exemption – interpretation of section 58F
    • Estimating fuel expenses for the purposes of determining any ‘recipient’s payment’
    • GAP and lease protection insurances added to a lease as part of employee arrangements for salary sacrificing of car fringe benefits
    • FBT risk and compliance update.

    The formal minutes of the meeting will be published on the ATO website in due course.
    The next meeting will be on 16 May 2013. If members have any issues they would like raised, please email them to the Tax Group.

  • NTLG FBT Sub-committee meeting on 8 November 2012

    On 8 November 2012, Paul Ellis (Ernst & Young) attended the National Tax Liaison Group (NTLG) FBT Sub-committee meeting as representatives of the Institute.

    The meeting addressed a number of issues arising from the recently enacted changes to the Living Away From Home Allowance (LAFHA) rules including:

    • establishing an ownership interest in a usual residence
    • what amounts to a contract extension under the transition rules 
    • whether a material variation has occurred for the purpose of the transition rules 
    • declaration requirements 
    • treatment of utility costs 
    • the draft taxation determination on reasonable food amounts.

    The ATO also indicated that it is currently in the process of rewriting the LAFHA chapter in the FBT Guide for Employers to reflect the recently enacted changes.

    Other issues also covered in the meeting included:

    • FBT lodgment deferral arrangements 
    • the treatment of premium priced employee share options 
    • the valuation of corporate box benefits.

    The formal minutes of the meeting will be published on the ATO website in due course.

    The next meeting will be on 15 February 2013. If members have any issues they would like raised, please email them to the Tax Group.

  • NTLG FBT Sub-committee meeting on 9 August 2012

    On 9 August 2012, Paul Ellis (Ernst & Young) and Elizma Bolt (Deloitte) attended the National Tax Liaison Group (NTLG) FBT Sub-committee meeting as representatives of the Institute.

    Key issues discussed included: 

    • FBT return lodgment deferral arrangements
    • Application of superannuation guarantee to living-away-from-home-allowances
    • Whether the cost to renew a temporary work visa is eligible for the otherwise deductible rule
    • Pre-paid parking relating to a non-designated car space – does it qualify as a car parking fringe benefits
    • Fringe benefit – partnership interest provided to employee at discount
    • FBT risk and compliance update.

    The formal minutes of the meeting will be published on the ATO website in due course.

    The next meeting will be on 8 November 2012. If members have any issues they would like raised, please email them to the Tax Group.

  • NTLG FBT Sub-committee meeting on 14 February 2013

    On 14 February 2013, Paul Ellis (Ernst & Young) and Elizma Bolt (Deloitte) attended the National Tax Liaison Group (NTLG) FBT Sub-committee meeting as representatives of the Institute.

    Key issues discussed included:

    • Do employees working on a 9-day fortnight satisfy the requirements of the fly-in-fly-out and drive-in drive-out rules contained in paragraph 31E(a)(i)?
    • Living-away-from-home reasonable food component
    • Cash allowances v Living-away-from-home allowances
    • Relocation transport exemption – interpretation of section 58F
    • Estimating fuel expenses for the purposes of determining any ‘recipient’s payment’
    • GAP and lease protection insurances added to a lease as part of employee arrangements for salary sacrificing of car fringe benefits
    • FBT risk and compliance update.

    The formal minutes of the meeting will be published on the ATO website in due course.
    The next meeting will be on 16 May 2013. If members have any issues they would like raised, please email them to the Tax Group mailto:taxgroup@charteredaccountants.com.au.
  • NTLG FBT Sub-committee meeting on 10 May 2012

    On 10 May 2012, Paul Ellis (Ernst & Young) and Elizma Bolt (Deloitte) attended the National Tax Liaison Group (NTLG) FBT Sub-committee meeting as representatives of the Institute. A the meeting, Treasury clarified a number of issues on the reforms to the Living Away From Home Allowances (LAFHA) regime: 

    • Transitional relief until 1 July 2014 is only applicable to permanent residents where those benefits are provided under an employment arrangement that was in place before 7.30pm on 8 May 2012
    • Treasury has confirmed that, at this stage, the tax treatment of other benefits commonly provided to employees that are living away from home (such as the reimbursement of relocation costs, children’s education, leasing of household effects and overseas employment holiday transport, etc) is not being amended
    • ATO will release information on PAYG variation in respect of LAFHA paid to employees post 1 July 2012 
    • An exposure draft of the legislation is expected to be released shortly.

    In the meantime, Treasury has issued a document for our members on the effect of the Budget and the Mid-Year Economic Fiscal Outlook (MYEFO) 2011-2012 announcements regarding the LAFHA changes.

    Other issues discussed included:

    • Interaction between the otherwise deductible rule and the non commercial loss rules 
    • Process for additions to remote/non-remote list of overseas locations 
    • Car fringe benefits and changes to the statutory formula – further clarification of practical scenarios

    The formal minutes of the meeting will be published on the ATO website in due course.

    The next meeting will be on 9 August 2012. If members have any issues they would like raised, please email them to the Tax Group.

  • NTLG FBT Sub-committee meeting on 10 November 2011

    On 10 November 2011, Paul Ellis (Ernst & Young) and Elizma Bolt (Deloitte) attended the National Tax Liaison Group (NTLG) FBT Sub-committee meeting as representatives of the Institute. Some of the issues discussed were:

    • Electronic declarations
    • Credit card processing fees
    • Car parking fees in fly-in/fly-out situations
    • Penalties – FBT mis-allocations within a group
    • Living Away From Home Allowance (LAFHA) review
    • Review of ATO‘s management of complex issues – case study on LAFHA
    • Overseas remote area list
    • FBT risk and compliance update

    For further information on the meeting, please refer to the 10 November NTLG FBT meeting agenda. The formal minutes of the meeting will be published on the ATO website in due course.

    The next meeting will be on 16 February 2011. If members have any issues they would like to raise, please email them to the Tax Group.

  • NTLG FBT Sub-committee meeting on 11 August 2011

    On 11 August 2011, Paul Ellis (Ernst & Young), Elizma Bolt (Deloitte) and Norman Kang of the Institute attended the National Tax Liaison Group (NTLG) FBT Sub-committee meeting as representatives of the Institute. Some of the issues discussed were:

    • FBT lodgment program proposals
    • ATO interpretation of reforms to the car FBT legislation (statutory formula method)
    • Exempt motor vehicles
    • Residential cleaning costs
    • Application of the section 58X exemption for portable electronic devices and internet download charges on a mobile phone
    • Resolution on the issue of whether a government department is regarded as a ‘tax-exempt employer’ for meal entertainment valuation purposes
    • Car parking fringe benefits and shopping centre car parks

    For further information on the meeting, please refer to the 11 August NTLG FBT meeting agenda. The formal minutes of the meeting will be published on the ATO website in due course.

    The next meeting will be on 10 November 2011. If members have any issues they would like to raise, please email them to the Tax Group.