Question:
FBT exempt: payment for immediate relief of flood victim
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
Payments by an employer to an employee who was a victim of floods may be an FBT exempt benefit (and not salary and wages).
Conditions are:
+ The home was made uninhabitable
+ The employee had no other accommodation following the floods
+ The payment was for meals, food supplies, clothing, hire of household goods and rent
+ For a reasonable period of time to enable the employee to find alternative permanent accommodation.
The FBT Act states that an employment benefit provided solely by way of the grant of emergency assistance is exempt from fringe benefits tax. An emergency is defined
to include a natural disaster, conflict involving an armed force, civil disturbance, accident, serious illness
or any similar matter.
Emergency assistance is where the person is a victim of the emergency or at immediate risk of becoming a victim and the assistance was granted solely to provide immediate
relief in the form of first aid, emergency health care, emergency meals and food supplies, emergency clothing, emergency transport, accommodation, emergency use of
household goods, temporary repairs and any similar matter.
Such a payment would be deductible to the employer (as it is made in respect of employment) and not assessable to
the employee. It would not appear as salary and wages on the employee’s PAYG payment summary.
s 58N of the FBT Act, ATO ID 2011/60, NTAA Voice No. 207, p12
