Employers urged to review salary packages
A Deloitte Touche Tohmatsu employment taxes partner has urged all employers to review employee remuneration packages in light of proposed changes to fringe benefits tax (FBT) law announced in the 2008 Federal Budget.
Elizma Bolt said the key changes employers need to be aware of are the tightened provisions in relation to ‘eligible work-related items’ (such as laptops and other technological devices) and ‘property consumed on an employer’s premises’.
“For example, salary packaging laptops and electronic devices as well as meal card type arrangements may no longer be attractive,” she said.
While it has been common practice for parents to invoke FBT salary sacrificing provisions when purchasing laptops for their children, they will now need to confirm the item is to be used for work purposes. Bolt welcomed amendments to the FBT legislation clarifying exactly what is considered a ‘work-related item’.
Bolt said employers providing staff with meal cards to buy tax-free lunches (a popular practice that has recently become the subject of Australian Taxation Office scrutiny) will need to unwind these arrangements by March 31, 2009, or face severe penalties. She pointed out that proposed amendments to the FBT legislation would not affect onsite canteens.
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
