This article contains a summary of the key tax changes in the 2011 budget that impact on small businesses. As always, there are winners and losers. A small business for tax purposes is defined to have a turnover of less than $2 million GST exclusive. Immediate deduction for asset purchases Small business will obtain an instant [...]
Browsing Posts in Fringe Benefits
Depending on the business structure you operate, you may be required to lodge different tax returns. Australian tax laws lay down specific rules and guidelines for reporting and computing amounts subject to various taxes which every business person must be familiar with or risk the assessment of penalties. Income tax return Sole trader If you [...]
Watch the following video and learn about calculating the value of LAFHA: A business structure or entity is allowed to pay a living away from home allowance (LAFHA) to an employee who is living away from home as part of their work duties. This allowance is not treated as income under the PAYG scheme but will be subject to [...]
Watch this video to learn about the living away from home allowance and tax: In addition to the salary you can receive as an employee, you may also be entitled to a living away from home allowance (LAFHA) which is used to compensate for the additional expenses and any disadvantage that you may suffer while assigned elsewhere [...]
Salary packaging is an effective way to optimise ones tax position Packaging allows employees to change the structure of there remuneration package and take non cash benefits in lieu of salary The most common packaging items are: Cars Living Away From Home Allowances Relocation expenses Laptops Additional superannuation We will review your salary package and [...]
Annual fringe benefit tax returns are required to be lodged by all employers who provide “fringe benefits” to employees. The fringe benefits year runs from 1 April – 31 March Fringe benefits tax is payable by the employer Popular fringe benefits are: Car benefits Entertainment Loan benefits Specific exemptions include: Relocation costs Minor benefits Living [...]
With Christmas almost upon us, many employers will be shopping for Christmas gifts for their employees, clients and other special people. At this point it is important to consider the new rules relating to the minor fringe benefit exemption which can save employers $000’s. These rules now allow an employer to provide an “infrequent” benefit [...]