COVID-19 tests and fringe benefits tax

NATIONAL

It’s that time of year again - COVID-19 tests and fringe benefits tax

• From 1 July 2021, if you provided (or reimbursed the cost of)

COVID-19 tests to your employees for work purposes from this date, you may be able to reduce the taxable value by applying the otherwise deductible rule. • If COVID-19 tests are the only fringe benefit you provided to your employees, and you have reduced the taxable value to nil, you will not have a FBT liability and will not be required to lodge a FBT return.

The existing FBT record keeping requirements apply. You will need to keep all records relating to how you calculated the taxable value of benefits, including the necessary declarations.

For more information, visit https:// www.ato.gov.au/General/COVID-19/ Support-for-businesses-and-employers/ FBT,-COVID-19-tests-and-the-otherwisedeductible-rule/ Claiming COVID-19 tests

From 1 July 2021, employees can claim a tax deduction for COVID-19 tests they purchased for work purposes.

To claim a deduction for the cost they incurred for a COVID-19 test, they must have: • used the test for a work-related purpose • paid for a qualifying COVID-19 test, such as a PCR or RAT • paid for the test themselves (that is, their employer didn’t provide the test or reimburse them for the cost) • kept a record to prove they incurred the cost (usually a receipt) and were required to take the test for work purposes.

2022 Fringe benefits tax time

Some important things to be aware of and help you lodge: • If you make a car available to your employees for private use, you may be providing a car fringe benefit. If you are not sure, there are a number of resources available on the ATO website to help you decide – including a car fringe benefit video series and webinar sessions.

Consider the exemptions and concessions you may be eligible for, which can help to reduce the amount of FBT you pay.

For more information, visit ato.gov.au/ FBTaxTime

Small business

Fuel tax credit rates have changed

If you claim fuel tax credits on your BAS, remember, the rates changed on 1 February and 30 March. If you lodge quarterly, 3 different rates may apply to your BAS. Use the ATO’s fuel tax credit calculator to make it easier to apply the right rates: https://www.ato.gov.au/ Calculators-and-tools/Fuel-tax-credittools/

Disclosure of business tax debt

As part of the disclosure of business tax debts measure, the ATO continues to contact businesses who meet the criteria for disclosure. The ATO has also recently disclosed a small number of debts to a credit reporting bureau (CRB). If you have received an Intent to disclose or even a Debt disclosed notice, contact the ATO immediately to discuss action you can take to have your information removed from or prevented from being shared in a credit report. ATO Assistant Commissioner Claire O’Neill urges taxpayers to “engage with the ATO early to avoid the risk of disclosure which begins when your total debt is over $100,000 and remains unpaid for 90 days.” For more information, visit ato.gov.au/ disclosurebusinesstaxdebt.

ATO automatically pays interest on early payments

Since March 2022, the ATO has been automatically identifying, calculating, and paying interest on early payments (IEP). This process applies to eligible early payments you made from 1 July 2021. Generally, payment of IEP will be made within two weeks of the due date of the tax liability. Please ensure you have provided up-to-date details of your financial institution account so the ATO can make IEP payments electronically.

Superannuation

Super guarantee payments due 28 April

The super guarantee due date is 28 April for the quarter ended 31 March. This deadline cannot be extended. Make sure you are ready to pay the right amounts to the right funds by the due date.

Changes to super for under-18s

From 1 July 2022, employees who are under 18 will be eligible for super if they work more than 30 hours in a week, regardless of how much they are paid. This is because the $450 per month threshold for super guarantee is being removed for all workers. Check your payroll and accounting systems are updated closer to 1 July to correctly calculate your employees’ super guarantee payments.

For more information, visit https:// www.ato.gov.au/Business/Super-foremployers/?=redirected_payingsuper