Thank you for your Webinars!!! Can you please do one on FBT with Salary Packaging - An employee buying a car - how much tax is saved and cost to the employer
i would, but i haven't been able to calculate if an employee actually gets a benefit. I hear the Salary Sacrific companies try and tell me how great it is and how much tax an employee will save, but unless im not good at maths, i can't see much benefit. derek
the reason i can't see it being a benefit is the high rate of Fringe Benefits Tax that is payable by the employer. 47% is equal to the highest marginal tax rate and way higher than the 30% company tax rate. usually with every calculation for the salary sacrific, there is a pre-tax amount and the post-tax amount that is taken from an employee's pay. The post-tax amount is the least explained because that is the FBT component and most salary sacrific companys 'gloss' over the calculation of the post-tax amount. derek
Hi Derek ! Thank you very much for taking your time to share your knowledge. You are amazing and have solved many of my questions on your videos. I was going to ask a very specific question. If I were to buy a luxury car as a G class Mercedes in the company name, which GVM is 4.5tonnes and kerb weight is 2.5tonnes, therefore payload capacity is over 1 Tonne. Would it be FBT exempted if I drive it less than the Kms allowed by the ATO ? Thanks for your time and help
if you have watched my other videos, you will see i'm not a 'car person' and had to look up what a G Class Mercedes looked like. The ATO rules in relation to vehicles that are subject to FBT is very clear. "If a vehicle was designed to have a goods carrying capacity of less than 1 tonne or a passenger capacity of fewer than 9 people - it's a car for the purposes of car fringe benefits". If your G Class is designed to carry more than 1 tonne, you should be ok. derek
Hi Derek, thank you so much for your video and it’s really amazing and helpful and please keep doing it because we love your video!!!!👍👍👍 unfortunately my company has this issue of never done a logbook or fbt return for two company owned sedans, does that mean we have to lodge all the previous years fbt return using only statutory method? That will be lots of money to pay for employees contributions and will ATO penalise for late lodgement too? Many thanks!!!🙏🙏🙏
The ATO does require an actual logbook if you want to use the operating cost method, otherwise you have to use the Statutory method. Having said that, a few years ago i had a client who was audited by ATO (income tax audit) and didn't have a logbook. maybe we got a reasonable person from the ATO, but we were able to show the client still had the same car, their current business was the same and therefore usage of the car hadn't changed over the past 3 years. They agreed to let my client keep a log book for the next 13 weeks and provide that as evidence of usage going back 3 years (obviously the percentage miraculously worked out to be almost exactly what he had claimed). derek
@@TwelveAccountingThank you very much Derek and I totally agree with you!!! We have to try our best to do the correct things so I will check with management tomorrow! Thanks again and you’re so wonderful ❤❤🙏🙏
YES. FBT rules use a 'deemed' depreciation and a 'deemed' interest rate to calculate the FBT, even if you have fully written off the car and you don't have any finance. The FBT is calculated on the original cost (Plus GST), not the written down value. derek
Thank you....I follow your videos regularly from India.... working with Australia based CPA firm remotely from India ...thank you for your efforts
Are you interested for working for us. We are looking for employees how can learn on their own.
@@ankitkulshrestha3633 yes definitely I am interested
Always appreciate your webinar
Thank you for your Webinars!!! Can you please do one on FBT with Salary Packaging - An employee buying a car - how much tax is saved and cost to the employer
i would, but i haven't been able to calculate if an employee actually gets a benefit. I hear the Salary Sacrific companies try and tell me how great it is and how much tax an employee will save, but unless im not good at maths, i can't see much benefit. derek
the reason i can't see it being a benefit is the high rate of Fringe Benefits Tax that is payable by the employer. 47% is equal to the highest marginal tax rate and way higher than the 30% company tax rate. usually with every calculation for the salary sacrific, there is a pre-tax amount and the post-tax amount that is taken from an employee's pay. The post-tax amount is the least explained because that is the FBT component and most salary sacrific companys 'gloss' over the calculation of the post-tax amount. derek
Hi Derek ! Thank you very much for taking your time to share your knowledge. You are amazing and have solved many of my questions on your videos.
I was going to ask a very specific question. If I were to buy a luxury car as a G class Mercedes in the company name, which GVM is 4.5tonnes and kerb weight is 2.5tonnes, therefore payload capacity is over 1 Tonne. Would it be FBT exempted if I drive it less than the Kms allowed by the ATO ?
Thanks for your time and help
if you have watched my other videos, you will see i'm not a 'car person' and had to look up what a G Class Mercedes looked like. The ATO rules in relation to vehicles that are subject to FBT is very clear.
"If a vehicle was designed to have a goods carrying capacity of less than 1 tonne or a passenger capacity of fewer than 9 people - it's a car for the purposes of car fringe benefits".
If your G Class is designed to carry more than 1 tonne, you should be ok. derek
Hi Derek, thank you so much for your video and it’s really amazing and helpful and please keep doing it because we love your video!!!!👍👍👍 unfortunately my company has this issue of never done a logbook or fbt return for two company owned sedans, does that mean we have to lodge all the previous years fbt return using only statutory method? That will be lots of money to pay for employees contributions and will ATO penalise for late lodgement too? Many thanks!!!🙏🙏🙏
The ATO does require an actual logbook if you want to use the operating cost method, otherwise you have to use the Statutory method. Having said that, a few years ago i had a client who was audited by ATO (income tax audit) and didn't have a logbook. maybe we got a reasonable person from the ATO, but we were able to show the client still had the same car, their current business was the same and therefore usage of the car hadn't changed over the past 3 years. They agreed to let my client keep a log book for the next 13 weeks and provide that as evidence of usage going back 3 years (obviously the percentage miraculously worked out to be almost exactly what he had claimed). derek
@@TwelveAccountingThank you very much Derek and I totally agree with you!!! We have to try our best to do the correct things so I will check with management tomorrow! Thanks again and you’re so wonderful ❤❤🙏🙏
If we have written off the car in 22/23 do we need to still do FBT?
YES. FBT rules use a 'deemed' depreciation and a 'deemed' interest rate to calculate the FBT, even if you have fully written off the car and you don't have any finance. The FBT is calculated on the original cost (Plus GST), not the written down value. derek
@@TwelveAccounting appreciate your response