FBT 2012 - Minor Benefits Exemption - how Tax Exempt employers can get the most out of this misunderstood gem

Overview

The Minor Benefits Exemption is one of the most frequently misunderstood, misused and underutilised benefits for Tax Exempt employers.

This intensive seminar comprehensively covers the fundamental application of the $300 minor benefit exemption to exempt from Fringe Benefit Tax (FBT) those benefits provided infrequently and irregularly with a taxable value per benefit per employee not exceeding $300.

The seminar provides not only coverage of the specific FBT outcomes and reporting requirements when using the $300 minor benefit exemption, but also imparts to attendees the tips, traps and pitfalls that Tax Exempt employers should consider when availing themselves of this exemption.

Topics covered

This seminar will comprehensively cover:

• An analysis of the core principles outlined in the Commissioner’s ruling TR 2007/12 pertaining to effective access to the $300 minor benefit exemption
• Practical application of the prerequisites to enable Commissioner’s to exercise his discretion to allow access to the $300 minor benefit exemption, including case studies and examples to illustrate the same
• The effective application of the minor benefit exemption to minimize or negate FBT exposure in the case of:

• staff functions, including Christmas parties, financial year-end celebrations, award nights, etc;
• Gifts cards, vouchers, theatre tickets, etc; and
• Gym memberships; health fund subscriptions, etc

• Instances where the minor benefit exemption can apply to entertainment benefits provided to by tax exempt bodies, including practical examples of the same
• The income tax and GST outcomes for employers on the use of the minor benefit exemption
• Recent legislation, ATO rulings, determinations, court judgements and Government announcements pertaining to the application of the $300 minor benefit exemption

Learning objectives

On completion of this seminar attendees will be able to:

• Identify and assess the necessary prerequisites for effective application of the $300 minor benefit exemption in given instances
• Understand the specific application of FBT to tax exempt body entertainment benefits, and discern the entitlement of tax exempt bodies to the $300 minor benefit exemption
• Understand the impact of recent FBT legislation, ATO rulings, determinations and court judgements pertaining to the use of the $300 minor benefit exemption

Who should attend

This intensive FBT seminar will be of particular value to line managers, supervisory staff and other employees who have ongoing involvement in:

• the administration and management of payroll
• salary packaging arrangements
• the provision and allocation of fringe benefits
• the preparation, review and management of FBT returns, FBT record-keeping, FBT reporting and accounting

Additional materials

• Comprehensive technical paper
• Presenter notes
• CPD certificate = 2 hours/points

Presenter

Peter Adams M Tax Law, FTIA CA Tax Director