In August 2021, Maxine found employment as a consultant for a small sustainability firm in Warrnambool. The contract includes an annual salary, which $62,000 plus superannuation has been received in the 2022 income tax year. Maxine was required to purchase wet weather gear and other protective clothing at her own expense, totalling $660. Her employer reimbursed her for the total amount and also provided her with a hand-held radio transceiver (cost $270) and tablet computer (cost $1,599 plus case $210) for whilst she is on site visits. Explain the income tax and FBT implications of the remuneration package she is receiving from her employer, from both the employee and employer’s perspective.
In August 2021, Maxine found employment as a consultant for a small sustainability firm in Warrnambool. The contract includes an annual salary, which $62,000 plus superannuation has been received in the 2022 income tax year. Maxine was required to purchase wet weather gear and other protective clothing at her own expense, totalling $660. Her employer reimbursed her for the total amount and also provided her with a hand-held radio transceiver (cost $270) and tablet computer (cost $1,599 plus case $210) for whilst she is on site visits.
Explain the income tax and FBT implications of the remuneration package she is receiving from her employer, from both the employee and employer’s perspective.
The fringe benefits tax is paid by employers on benefits provided by them to their employees. It is levied on the taxable value of the perks. It is different from income tax. Fringe benefits are counted as income after a certain amount is determined by the government.
Step by step
Solved in 2 steps
