Proposed changes to Living-away-from-home allowances (LAFHA)
The Government has announced that the fringe benefits tax (FBT) treatment of Living-away-from-home allowances (‘LAFHA’) will be reformed. The proposed changes are proposed to apply from 1 July 2012 for both new and existing arrangements. All benefits and allowances provided i
Allowance of foreign tax credit against Medicare levy
Allowance of credit for foreign tax paid against Australian tax payable, including the Medicare levy On 23 September 2011 we published ATO Interpretative Decision 2011/75, which states that we will allow a credit for Papua New Guinea (PNG) tax paid on PNG sourced income, to reduce an Australia
Australian Government review of transfer pricing rules
Government proposes more "robust" transfer pricing rules for multinationals In media release No 2011/145, issued 1 November 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced that the Government will reform the transfer pricing rules in the
Carbon tax legislation passed
Carbon tax bills pass Senate The Government's Clean Energy legislation today [Tue 8.11.2011] passed the Senate without amendment. The Bills effectively await Royal Assent - they comprise: - Clean Energy Bill 2011 - sets out the structure of the carbon pricing mechanism, including entities and
New amounts for reasonable food component of a LAFHA
The Australian Taxation Office has released Taxation Determination TD 2011/4: FBT: for the purposes of Div 7 of Pt III of the FBTAA, what amount represents a reasonable food component of a LAFHA for expatriate employees for the FBT year commencing on 1 April 2011? TD 2011/4 sets out the new reasona
ATO review of LAFHA arrangements
The ATO has recently announced that it will commence a review of living away from home allowance (‘LAFHA’) arrangements from April 2011. The ATO will be writing to selected employers requesting information regarding the provision of LAFHAs to employees. The ATO has indicated that
FBT tax returns due 21 May 2011
As you may be aware, the Fringe Benefits Tax (‘FBT’) year for 2011 is rapidly coming to a close. To assist you in preparing for this busy time, we have outlined below some of the benefits you may provide to your employees, as well as a number of issues to consider in the coming weeks. T
FBT exemption for FIFO workers
FBT exemption for fly-in/fly-out arrangements: ATO admin treatment The Government has announced that it intends to introduce legislation to extend the FBT exemption for travel between home and work sites for fly-in/fly-out employees working overseas, and their employers. Draft leg
Rachel Wilson - Fashion, Family & Finance
Whoever said fashion and finance don’t mix hadn’t counted on Rachel Wilson coming along. The tax accountant who has just launched a high fashion brand for businesswomen reveals the high and lows of this journey so far, and why her feet have hardly touched the ground. It&rs
Non-resident employer obligations: PAYG withholding and FBT
- Taxation Determination TD 2011/1 This TD, released today [Wed 19.1.2011], states that a non-resident entity that pays an Australian resident for work performed overseas must withhold an amount in accordance with s 12-35 of Sch 1 to the Taxation Administration Act 1953 if the non-
Australian Government to examine tax changes to shipping - discussion paper released
The Australian Government has released a Discussion paper outlining reforms it is proposing with regard to Australia's domestic shipping industry. Over the course of the next 3 years, the Government proposes to, among other things, introduce new tax arrangements to attract greater investment into th
Treaty Shopping & Part IVA
On Wednesday, 1 December 2010, the Australian Taxation Office released Taxation Determination TD 2010/20 which states that Pt IVA of the ITAA 1936 can apply to arrangements designed to alter the intended effect of Australia's International Tax Agreements network. According to the ATO, whe