Fringe Benefits Tax in Practice
The FBT areas that pose the greatest risk if you get them wrong
Understand the definitions, limitations and calculations
Ensure the right outcome for clients

 

Welcome to Knowledge Shop IQ (how IQ modules work)

 

FBT is full of definitions, limitations, and exemptions. This IQ module takes you into common problem areas to help you identify issues before they become problems, correctly apply the FBT laws, and ensure that you protect your clients from risk.

 

See the IQ module outline. 

The FBT in Practice Module is part of the Intermediate I Program of 10 modules specifically designed to manage the training needs of your Intermediate team members across a year.

 

Level 2Level
Intermediate/ Accountant

LengthLength
1:34 minutes plus quiz questions

KeyAccess
24/7 for 12 months

ResourcesResources
Downloadable reference notes

PD HoursPD Hours
2 PD Hours

This module focuses on identifying when car and other motor vehicle benefits arise, how to deal with entertainment benefits and applying some of the most common FBT exemptions and concessions.

Introduction & Outline (1:01) 

Car fringe benefits (2:51)

  • How to determine if a car has been provided
  • Definitions
  • When benefits other than a car benefit arises
  • Private use and private use issues that arise in practice

 

Novated leases (2:07)

  • Operation of novated leases
  • Working with novated leases in practice

 

Valuing car benefits (1:35)

  • Methods of valuing car benefits
  • When the various methods are used

 

Statutory formula (1:43)

  • Statutory formula and how it applies
  • Statutory formula calculations

 

Determining base value (0:00)

  • How to calculate base value

  • When the calculations are different

  • What is included and excluded from the calculation

  • Employee contributions

  • Why it’s important to check the detail of the arrangement and what to look for

  • When base value can be reduced

  • How the reduction applies

  • What in included and excluded from the reduction

     

  • Impact of holding periods

 

Statutory percentage (02:22)

  • Applying the statutory percentage

  • Pre and post 7:30pm AEST, 10 May 2011

  • Contract periods and when the post 10 May rules apply

 

Quiz 1 (7:17)

  • Quiz 1 answer explained

 

Employee contributions (4:17)

  • Treatment of employee contributions

  • Impact on taxable value

 

Operating cost (5:35)

  • Operating cost calculation

  • Actual operating costs

  • When it varies and why

  • What is included and excluded from actual operating costs

  • Deemed operating costs and when they are recognised

  • Calculating deemed operating costs

  • Deemed depreciation and the calculation

Private usage (2:32)

  • Logbook usage and the stringent requirements

  • Calculating private use

  • When adjustments are required

Logbooks (1:43)

  • Use of logbooks

  • When they are required

  • Use of elections

Nature of travel (3:06)

  • The nature of travel – what the law says
  • General rules
  • Exceptions in detail

Quiz 2 (6:33)

  • Quiz 2 explanation

 

Vehicles that are not cars (1:56)

  • What happens when a vehicle is not a car

  • The fringe benefit implications and how to manage them

  • Exemptions

  • Calculating taxable value

 

Exempt motor vehicles (8:33)

  • Working with exempt motor vehicles
  • Warning on ATO activity and what to look out for
  • Exemptions and how they apply
  • Exemption conditions

  • Correctly identifying eligible exempt motor vehicles
  • The steps and requirements
  • How to determine if a vehicle is designed to carry passengers
  • The legal expectations of exempt motor vehicles

 

PCG 2017/D14 and the safe harbour guidelines (5:27)

  • The safe harbour guidelines for exempt car and residual benefits
  • When the safe harbour applies
  • What is required to qualify for the safe harbour – the conditions in detail

 

Entertainment (11:33)

  • Types of entertainment and the likely FBT implications
  • Meal entertainment benefits
  • Tax-exempt body entertainment benefit
  • Definitions and how the law applies

  • Common scenarios and examples
  • Issues to be aware of
  • What exemptions apply and when

  • Entertainment exceptions

 

Valuing meal entertainment (4:20)

  • Calculating the taxable value of meal entertainment

  • Special meal entertainment methods

  • Application of the 50-50 split method

  • Application of the 12-week register method

  • Validity

 

Quiz 3 (6:46)

  • Quiz 3 explanation

Otherwise deductible rule (9:46)

  • Nature of the otherwise deductible rule
  • Definitions
  • The process where only some of the expenditure would have been immediately deductible

 

Quiz 4 (5:16)

  • Quiz 4 explanation

 

Otherwise deductible rule and car expenses (1:55)

  • How the otherwise deductible rule applies to car expenses

 

Minor benefits (3:52)

  • Minor benefit criteria
  • Why the bigger picture needs to be taken into account

 

Quiz 5 (7:15)

  • Quiz 5 explanation

What is Knowledge Shop IQ?

Knowledge Shop IQ is engaging, interactive online training available when you want it on most devices. Featuring knowledge driven quizzes developed by our technical specialists, IQ also enables you to prove your knowledge - it’s training that moves well beyond hours completed to knowledge acquired.

 

If you are going to spend time completing training, make that time worthwhile.

 

Once you have accessed your first IQ training module, all other Knowledge Shop IQ modules and webinars you participate in will show on your personal profile.

For managers, Knowledge Shop IQ gives you the ability to:


  • Assign training to your team, and
  • Track and measure performance.

Knowledge Shop IQ is an essential tool for any practice looking to truly manage professional development.

 

Got questions? Email us or call the team on 1800 800 232.

 

IQ Presenter

Michael Carruthers

Tax Director, Knowledge Shop

Michael Carruthers Director Knowledge Shop

Michael oversees the development of the tax team for Knowledge Shop and Hayes Knight in Sydney and is head of the Hayes Knight group’s national tax committee. 

 

Michael has a knack for seeing through the complexity and helping practitioners work through highly technical issues with certainty and accuracy. 

 

He is a member of the advisory panel for the Board of Taxation and was an expert panel member for the Board of Taxation’s review of tax impediments facing small business.

 

Linked In

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Michael was the Thought Leader of the Year at the 2016 Accounting Awards

Investment

The FBT in Practice Module is part of the Intermediate I Program of 10 modules specifically designed to manage the training needs of your Intermediate team members across a year.

 

 

Knowledge Shop members register through the member-only website

 

 

Members please log in from the registration page or register through the member-only website.

More on membership

 

Terms & Conditions 
All registrations to Knowledge Shop events are subject to our terms and conditions which include a cancellation policy. No refunds are provided once a module has been accessed.