FRINGE BENEFIT TAX – INTEREST AND COSTS

TD 2017/3 – FBT: BENCHMARK INTEREST RATE

The benchmark interest rate for the 2017/18 FBT year is a 5.25% p.a. (5.65% applied in 2016/17).

The rate of 5.25% is used to calculate the taxable value of:

  • A loan fringe benefit; and
  • A car fringe benefit where an employer chooses to value the benefits using the operation cost method

TD 2017/8 – COSTS OF TRAVELLING IN RELATION TIO THE PREPARATION OF TAX RETURNS

This Taxation Determination confirms that the costs of travelling to have a tax return prepared by a “recognised tax adviser” are deductible under S.25-5 of the ITAA 1997.

Under S.25-5(1)(a) of the ITAA 1997, a taxpayer can claim a deduction for the cost of managing their tax affairs.

However, appointment may be required to the extent that the travel elates to another non-incidental purpose.

TD 2017/10 – INCIDENTAL COST INCURRED AFTER A CGT EVENT

Various “incidental costs” relating to either acquiring a CGT asset or to a CGT event, can be included in the cost base of the CGT asset.

Whilst there are ten several types of incidental costs, some of the more commonly encountered incidental costs (falling within the first of the ten different types) are payments for the services of an accountant, broker or legal adviser, amongst others.

The Taxation Determination confirms that an incidental cost, can be considered to relate to a CGT event, and therefore be included in the CGT asset’s cost base, even if the cost is incurred after the CGT event.

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