Question:
Fringe benefits data matching
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
The Tax Office is using data matching to catch out employers not paying fringe benefits tax for motor vehicles and living away from home allowances.
The minutes of a Tax Office and industry liaison committee have been released and show Tax Office use of data matching to:
• Identify excessive reductions to minimise the taxable value of living away from home allowances;
• Employers that purchased high value new motor vehicles and have not registered for FBT;
• The Tax Office also says it is using direct mail and phone campaigns including:
+ Contacting 1,000 employers whose FBT return lodgement has lapsed; and
+ 2,000 businesses which have purchased exempt vehicles (such as utilities) and have not registered for FBT to remind them that there are other requirements for the use of the vehicle to be FBT exempt apart from its body type.
They say that in some cases it appears that FBT is being paid in a group entity which is not the actual employer and that this is not legitimate. They also say that some employers are not including employee contributions towards benefits as income in their tax returns.
NTLG FBT Sub-committee meeting 12 May 2011, WTB 1341
