Answered: Advise Aussie Models Pty Ltd of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Julie Duff accepts an offer of employment made by Aussie Models Pty Ltd to be their new marketing manager. Her salary package includes:
• The use of a gym. The gym is located several kilometres from the premises of Aussie Models Pty Ltd. The cost to attend the Gym is $1,950 per annum. No part of the cost would have been deductible to Julie under the Income Tax Assessment Act 1997 or 1936 had she paid the amount. Aussie Models Pty Ltd is entitled to claim the input tax credit for GST purposes.
Required:
Advise Aussie Models Pty Ltd of the fringe benefits tax payable (rounded to the nearest dollar) of the fringe benefit
for the FBT year ended 31 March 2018

Definition Definition Benefits in addition to compensation that companies give to their employees. Fringe benefits can boost morale and productivity and keep employees motivated. Companies often use fringe benefits as a competitive advantage to recruit and retain employees. Examples of fringe benefits include pensions, vacation time, tuition reimbursement, free or subsidized meals, and gym memberships.

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