Christmas is traditionally a time of giving, including employers showing gratitude to their workers for a job well done throughout the year, also to customers, contractors, and suppliers. However, depending on the nature and value of the gift, and also who the gift recipient is, such magnanimity can attract unwanted income tax, fringe benefits tax and also GST consequences. So how as an employer do you gift most tax-effectively this festive season? Aside from gifts, cash bonuses and leave bonuses are quite common at this time of year. These too have flow-on impacts for employers and employees alike.

Electric vehicles are set to become more affordable after the government sealed a deal with crossbench Senators. The new law introduces an electric car discount in the form of an FBT exemption. This allows for car fringe benefits comprising the use or availability for use of an eligible car that is a zero or low emissions vehicle to be exempt from FBT where certain conditions are met. Employers are the other big winner from the changes, which will remove the FBT liability on company-owned electric vehicles provided as part of a salary package for personal use by employees.

Meanwhile, in a recent speech, the ATO’s assistant Commissioner outlined the ATO's latest compliance issues it is focusing on for those who operate an SMSF. Identity fraud and investment scams, illegal early release of benefits, non-lodgment of SMSF annual returns, the adequacy and independence of audits, as well as the obtaining of director identification numbers for directors of corporate trustees are just some of the issues on the ATO’s radar.:On-boarding employees for the holiday rush: Hiring additional employees to help with surging end-of-year demand? The New employment form, accessed through ATO online services, will help reduce compliance time for employers.

Single member SMSFs: it is permissible to have single member funds. The main advantage of doing so is that you have total control over your retirement savings, and the investment decisions in respect of those savings. However, there are some issues to be mindful of.

Xmas gifts from employers: Gifts provided by employers to employees, contractors, suppliers and key customers can have very different income tax, GST, and FBT treatment. However, keeping some basic rules in mind can assist employers in gifting tax-effectively.

New work from home deduction rules: New rules have taken effect for calculating an individual’s work from home deductions. In summary, the new method for working out your claim may leave you worse off than the methods it replaced, and also impose a greater compliance burden.

FBT exemption for electric vehicles: Electric vehicles are set to become more affordable for both households and businesses after the government sealed a deal with crossbench Senators on legislation to exempt low and zero emission cars from fringe benefits tax (FBT).

SMSF compliance – what’s on the ATO’s radar?: identification fraud and investment scams, illegal early access to retirement savings, non-lodgment of annual returns, regulatory contraventions, the adequacy and independence of audits are just some of the issues on the ATO’s radar in respect of SMSF compliance.

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