April 2021 Newsletter

Please click on the following link to view our monthly accounting/tax newsletter for

April – 2021

We would like to highlight the following articles in this month’s newsletter:-

COVID-19 stimulus and support measures winding back

A number of important COVID-19 related government stimulus and support measures have now ceased. This means that businesses and individuals need to prepare for an environment where the government safety net is not as wide.

The following COVID-19 stimulus measures have now ceased:

  • JobKeeper;
  • Coronavirus Supplement;
  • the temporary COVID-19 qualification rules for JobSeeker payment and youth allowance;
  • HomeBuilder; and
  • some apprenticeship wage subsidies.

It’s time to consider FBT

If your business has provided any benefits to your employees, you may be liable for fringe benefits tax (FBT). This includes benefits to current, prospective and former employees, as well as their associates. If a benefit was provided in respect of employment, then it may be a taxable fringe benefit. Employers must self-assess the amount of FBT they have to pay when lodging their FBT return at the end of each FBT year (1 April to 31 March).

When working out your FBT liability you gross-up the taxable value of benefits you provide, to reflect the gross salary employees would have to earn at the highest marginal tax rate (including Medicare levy) to buy the benefits after paying tax.

Examples of fringe benefits include:

  • allowing an employee to use a work car for private purposes;
  • giving an employee a discounted loan;
  • paying an employee’s gym membership;
  • providing entertainment by way of free tickets to concerts;
  • reimbursing a non-deductible expense, e.g. school fees; and
  • giving benefits under a salary sacrifice arrangement with an employee.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.