September 2017

At a glance:
– If you make a car you own or lease available for the private use of your employee, you may provide a car fringe benefit.

You should:
– Determine which benefits you provide and their tax implications.
– Contact us if you require any clarification or advice.

For fringe benefits tax (FBT) purposes, a car is any of the following:

• A sedan or station wagon;
• Any other goods-carrying vehicle with a carrying capacity of less than one tonne; and
• Passenger-carrying vehicle designed to carry fewer than nine passengers.

If the vehicle provided does not meet the definition of a car, and your employee has private use of the vehicle, the right to use the vehicle may be a residual fringe benefit.

There are some circumstances where use of the car is exempt from FBT. For example, an employee’s private use of a taxi, panel van or utility designed to carry less than one tonne, is exempt from FBT if its private use is limited to:

• Travel between home and work;
• Incidental travel in the course of performing employment-related travel; and
• Non-work-related use that is minor, infrequent and irregular, for example occasional use of the vehicle to remove domestic rubbish.

Other benefits you provide relating to the use of a car, whilst not constituting a car fringe benefit, may instead constitute an expense payment or residual fringe benefit. For example:

• If you pay for, or reimburse, an employee’s expenditure on road tolls, you may be providing an expense payment fringe benefit;
• If you allow an employee to use your electronic toll tag, you may be providing a residual fringe benefit; or
• If you allow private use of a motor vehicle that is not a car, you may be providing a residual fringe benefit.

For more information, click here.

Remember:
– Where the place of employment and residence are the same, the car is taken to be available for the private use of the employee.

This article was published on 30/08/2017 and is current as at that date

Are you?
– A taxpayer whose main residence is being compulsory acquired.

At a glance:
– Capital gains tax (CGT) law extends the main residence exemption to the compulsory acquisition of part of your main residence, without the actual dwelling being acquired.

You should:
– Negotiate with the buyer to ensure your property is not being under valued.
– Contact us if you require any clarification or advice.

All levels of Australian government or entities acting on behalf of Government can compulsorily acquire land and associated structures or an interest in land for a public purpose.

The acquirer serves a notice on the landowner inviting them to negotiate for the disposal of the asset or part of the asset. This notice should inform the landowner that if negotiations are unsuccessful, the acquirer will proceed to acquire the asset or part of the asset in accordance with its legislative powers.

You will need to determine how much of the land being compulsorily acquired is associated with your main residence.

Each time a part of your main residence is compulsorily acquired, your maximum exempt area must be reduced by that amount.

For more information, click here.

Remember:
– If you have not reported a capital gain from the compulsory acquisition of part of your main residence, no further action is required from you.

This article was published on 30/08/2017 and is current as at that date

Are you?
– A taxpayer that is rolling over a capital asset.

At a glance:
– You may be allowed to roll over (defer or disregard) a capital gain that results from a CGT event, such as a small business restructure or marriage breakdown, until another CGT event happens.

You should:
– Check the list of circumstances in which you will be allowed a rollover.
– Contact us if you require any clarification or advice.

From 1 July 2016, small businesses have been able to change the legal structure of their business without incurring any income tax liability when active assets are transferred by one entity to another where certain qualifications are met.

This rollover applies to the transfer of active assets that are CGT assets, trading stock, revenue assets or depreciating assets used, or held ready for use, in the course of carrying on a business.

Where an asset or a share of an asset is transferred from one spouse to another as a result of their marriage or relationship breaking down, any CGT is generally deferred until another CGT event happens.

If you dispose of your land and any asset affixed to it, to an entity who holds a compulsory mining lease over it that would significantly affect your use of the land, you may be able to defer a capital gain.

You may be able to defer a capital gain if you dispose of your shares in a company or interest in a trust as a result of a takeover.

You may be able to defer a capital gain or capital loss when you replace an asset in the following circumstances:

• Your statutory licence was renewed, extended or replaced;
• Your shares in one company were exchanged for shares in an interposed company;
• Your units in a unit trust were exchanged for shares in a company; or
• You disposed of depreciating assets and replaced them.

For more information, click here.

Remember:
– You may be able to defer a capital gain or capital loss if a CGT event happens to your shares in a company or your interest in a trust as a result of a demerger.

This article was published on 31/03/2018 and is current as at that date

Are you?
– An individual with a HELP debt and planning to leave Australia.

At a glance:
– If you are an Australian resident for tax purposes and have a HELP (Higher Education Loan Program) debt you may need to notify the Tax Office if you leave Australia for an extended period.

You should:
– Notify the Tax Office of the change in your location.
– Contact us if you require any clarification or advice.

You will need to notify the Tax Office within seven days of leaving Australia if you intend to move or already reside overseas, for 183 days or more in any 12-month period.

This involves completing an ‘overseas travel notification’ and updating your contact details, including your mobile, international residential, postal and email addresses. You only need to update your details on ATO online services, not on your myGov account.

To complete your overseas travel notification you need:

• Your Australian or foreign passport; and
• Your travel information including: the country you are planning to reside in while overseas, your expected or actual departure date from Australia and your expected or actual date of return to Australia.

You will only need to lodge a subsequent ‘overseas travel notification’ if you come back to Australia, your residency changes and you meet the requirements to notify again.

You do not need to complete a subsequent notification if you are returning to Australia for a short period, for example, a holiday.

MyTax only accepts Australian financial institute details. If you do not have an Australian account you may bypass this step within myTax. The ability to bypass will be triggered by having a HELP debt, and an international residential address recorded.

To find out more, click here.

Remember:
– You must continue to update your contact details as long as you reside overseas through the Tax Office online services via myGov.

This article was published on 30/08/2017 and is current as at that date