APL Accounting News December 2017
Don’t let the ATO crash your party!
We’re all about having fun here at APL but we are also accountants therefore ‘rule followers’ – even when we party!
The ATO have some grinchy rules in place to make sure they put a damper on things. Here is a summary:
The gifting process must be ‘irregular and infrequent’ (much like Strudel’s display of obedience and Chica’s house training). There is also a limit of less than $300. Anything of $300 and over will incur a fringe benefits tax obligation. Any gift under $300 will not incur fringe benefits – but is it a deductible expense? It is only deductible if it is not classed as entertainment. For example:
1. You buy your staff member and their pet (of course) a bag of treats worth $100 (it’s a big bag). This is a deductible expense and no fringe benefits is triggered.
2. You take your team out to a (pet friendly) restaurant and the meal costs $200 per head. This does not trigger fringe benefits tax but is not a deduction either because meals out are classed as entertainment (regardless of how tame the gathering is – still entertainment).
3. You buy gifts worth over $300 for each staff member. This is like taking your dog to a no dog beach. Of course it’s possible to do, a ton of fun, your dog will love you and you will probably get away with it 80% of the time, but this would trigger fringe benefits tax, and you would be hit with a penalty and a ton of paperwork that no one wants to take care of.
With these 3 scenarios in mind – party as you wish!
Our trading hours over the Holiday break
We will be closing at midday on Thursday 21 December 2017 and we will reopen again on Wednesday 3 January 2018.
If there is an urgent matter between these times please contact Anne.
We hope you are all able to get a few days off as well over what might be a busy season for you all.
2017 – final curtain
We’d like to thank all of our clients for making 2017 a memorable year and wish you all the very best for 2018 and beyond. To our newer clients we thank you for recently jumping aboard the APL sleigh. We are looking forward to be working with you all again in the new year.
Jingle bells, our flea collars smell
We’re all packed and going away
Oh what fun the Festivus is
Enjoying a couple of paddling days. HEY!
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the informations applicability to their particular circumstances. In particular, please note that the APL dogs who often prepare this newsletter do not have opposable thumbs so have to type with their noses.