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LAFH changes increase employer compliance burden


Preparing the fringe benefits tax (FBT) return for 2013 and calculating individual employee reportable fringe benefit amounts is likely to be far more challenging than usual. With significant reform over the last few years, including recent measures targeting the effectiveness of salary packaging and changes to the living-awayfrom-home (LAFH) benefit, the checklist of things to watch out for and things to do is longer than ever. Importantly, the Australian Taxation Office has ramped up activities around FBT significantly and will no doubt be watching closely how employers manage (in particular, with the transition to the new LAFH rules and the management of cars from an FBT perspective).

This article looks at the key changes to the law, the challenges which employers and their advisers will face, and how to manage these changes when preparing the FBT return.

Author profile:

Paul Mather
Paul is a Director with FBT Solutions. Paul is a member of the Institute of Chartered Accountants (in both Australia and New Zealand), a registered tax agent, and a member of the ATO National Tax Liaison Group Fringe Benefits Tax Subcommittee.
Current at 1 December 2010.
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