At this time of year business’ often want to reward employees and customers with Christmas gifts.
Generally the FBT and income tax consequences for these gifts are as follows:
1. gifts to employees and family members – are liable to FBT (except where
the ‘less than $300’ minor benefit exemption applies) and tax deductible; and
2. gifts to clients, suppliers, etc. – are not liable to FBT and are tax deductible.
For more information on FBT exemptions for minor fringe benefits please see the ATO link below:
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.
We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.
The Australian Taxation Office will be looking for unusually high amounts in relation to work-related expenses claimed in 2017 Income Tax Returns. These claims include car expenses, clothing and laundry expenses. Taxpayers will need to prove the following in order to claim these expenses:
- They have spent the money themselves and have not been reimbursed.
- The claim is directly related to earning their income.
- They will need a record to prove the amount being claimed.
The link below outlines in detail what expenses a taxpayer can claim and an explanation for those deductions which cannot be claimed:
From 1 January 2018, a vacant residential land tax applies to homes in inner and middle Melbourne that were vacant for more than six months in the preceding calendar year. This is a new Victorian tax, and is different to land tax, the absentee owner surcharge and the federal annual vacancy charge.
The vacant residential land tax is assessed by calendar year (1 January to 31 December) and the six months do not need to be continuous.
For more details follow the link below:
We have recently received a number of enquiries as to asset limits and types of assets that can come into account when looking at eligibility for the government aged pension. One of the best ways to answer questions in this area is checking out the Department of Human Services website which has detailed information in an easily accessible format.
Check out the link below for more information on the aged pension:
Identity theft is on the rise in Australia and misuse of an individuals Tax File Number (TFN) is one way in which a scammer might seek to obtain an advantage by stealing your identity.
Remember only a limited amount of entities can ask for your TFN, including the Australian Taxation Office, your employer, banks and similar institutions, and government bodies administering assistance payments such as Centrelink etc.
If you suspect your TFN has been stolen, the ATO recommends you call them immediately so they can monitor any suspicious activity that may occur.
Please click on the link below to find out more:
