Employment Tax Quick Reference Guide 2021 - This document is a quick reference guide for Fringe Benefits Tax (FBT), Superannuation Guarantee (SG) ...
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Quick Reference Guide 2021
March 2021
Employment Tax
Quick Reference Guide 2021
This document is a quick reference guide for Fringe Benefits Tax
(FBT), Superannuation Guarantee (SG), Pay-As-You-Go (PAYG)
Withholding and Payroll Tax (PRT).
01Quick Reference Guide 2021
Fringe Benefits Tax 1 April 2020—31 March 2021
FBT rate on grossed up value of benefit 47%
Gross up factor Type 1—benefits for which employer can claim input tax credit for 2.0802
GST
Gross-up factor Type 2—benefits for which employer cannot claim input tax credit 1.8868
for GST
Reportable fringe benefits threshold (benefits are not reportable unless the cap $2,000 taxable value/
has been exceeded) $3,773 grossed-up taxable value
FBT benchmark interest rate for the year ending 31 March 2021 4.80% per annum
Car parking threshold for the year ending 31 March 2021 $9.15 per day
Minor benefits threshold Less than $300
Safety awards threshold $200
In-house benefits concession $1,000
Car fringe benefits statutory formula percentage (except cars acquired under 20%
pre-existing financial commitments as at 10 May 2011)
Due dates Self-lodgement Standard Tax Deloitte’s extended
via paper Agent lodgement program
1st FBT instalment 21 July 2020 21 July 2020 21 July 2020
2nd FBT instalment 21 October 2020 21 October 2020 21 October 2020
3rd FBT instalment 21 January 2021 21 January 2021 21 January 2021
4th FBT instalment 21 April 2021 21 April 2021 21 April 2021
Final payment due date 21 May 2021 25 June 2021 25 June 2021
Lodgement due date 21 May 2021 25 June 2021 25 June 2021
Deloitte Tax Insights
ATO’s view on tax treatment of travel expenditure 23 February 2021 report
Australian Taxation Office (ATO) Guides and Fact Sheets
Fringe Benefits tax—a guide for employers
2021 Fringe benefits tax - rates and thresholds
COVID-19 and fringe benefits tax
ATO Guidance update on “Phone, data and internet expenses” & “Taxi travel expenses exemption”
Reportable fringe benefits—facts for employees
Non-Profit Fringe benefits tax
Fringe benefits tax and entertainment for non-profit organisations
02Quick Reference Guide 2021 Housing indexation figures State Indexation figure NSW 1.000 VIC 1.017 QLD 1.002 SA 1.010 WA 0.969 TAS 1.056 NT 0.948 ACT 1.029 Reasonable food and drink amounts (per week) for LAFHA—Australia (refer to TD 2020/4) Family Size Reasonable food and drink allowance per week 1 Adult $276 2 Adults $414 3 Adults $552 1 Adult, 1 Child $345 2 Adults, 1 Child $483 2 Adults, 2 Children $552 2 Adults, 3 Children $621 3 Adults, 1 Child $621 3 Adults, 2 Children $690 4 Adults $690 Additional Adults $138 Additional Child $69 * Where the total of food and drink expenses for an employee (including eligible family members) does not exceed the amount the Commissioner considers reasonable, those expenses do not have to be substantiated Motor vehicle (other than a car) cents per kilometre rate (refer to TD 2020/3) Engine Capacity Rate per Kilometre 0-2500cc 56 cents Over 2500cc 67 cents Motorcycles 17 cents 03
Quick Reference Guide 2021 FBT updates: Taxation Rulings, Taxation Determinations, Product Rulings, Class Rulings and Practical Compliance Guidelines The ATO have issued the following FBT related Taxation Rulings, Taxation Determinations, Product Rulings, Class Rulings and Practical Compliance Guide TR 2021/1: Income tax: when are deductions allowed for employees' transport expenses? TD 2020/3: Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing on 1 April 2020? TD 2020/4: Fringe benefits tax: reasonable amounts under section 31G of the Fringe Benefits Tax Assessment Act 1986 for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit for the fringe benefits tax year commencing on 1 April 2020 TD 2020/8: Income tax and fringe benefits tax: treatment of allowances and benefits provided to Australian Government employees posted overseas PR 2020/11: Income tax and fringe benefits tax: tax consequences for Subscribers under a Carly Subscription Agreement CR 2020/14: SmarTrak Aust Pty Ltd (PoolCar) booking system—use for FBT car logbook records and odometer records CR 2020/25: Adelaide Airport Limited—provision of car parking facilities using an access card CR 2020/30: Smartgroup Corporation Ltd and subsidiaries—after tax recipient's payments made after 31 March but before lodgment of the FBT return CR 2021/3: Intelematics Australia Pty Limited CONNECT tracking and fleet management solution—use for FBT car logbook and odometer records CR 2021/12: Salary Packaging Australia Pty Limited—benefits provided to fly-in fly-out employees PCG 2020/3: Claiming deductions for additional running expenses incurred whilst working from home due to COVID-19 The ATO have issued the following FBT related Draft Taxation Ruling and Draft Practical Compliance Guideline TR 2021/D1: Income tax and fringe benefits tax: employees: accommodation and food and drink expenses, travel allowances, and living-away-from-home allowances PCG 2021/D1: Determining if allowances or benefits provided to an employee relate to travelling on work or living at a location—ATO compliance approach ATO FBT products Calculators Not-for-Profit FBT calculator Fringe Benefit Tax Car Calculator 04
Quick Reference Guide 2021
Superannuation Guarantee 1 July 2020—30 June 2021
SG contribution rate 9.5%
Maximum contribution base $57,090 per quarter
Concessional contribution cap $25,000 per income year. From 1 July 2018, where superannuation balance is less
than $500,000 on 30 June of the previous financial year, then contributions in
excess of the general contributions cap and additional concessional contributions
for unused amounts could be made.
The first year to carry forward unused amounts is the 2020–21 financial year.
Unused amounts are available for a maximum of five years, and after this period
will expire.
Non-concessional contribution cap $100,000 per income year, OR
$300,000 over three years (‘bring-forward’ option available for people aged under
65 years), OR
Nil, if the total superannuation balance is greater or equal than $1.6 million at the
end of the previous financial year.
Due dates Quarter Contribution due date
Superannuation is payable quarterly July—September 28 October 2020
and the payment due by the 28th of
October—December 28 January 2021
the month following the end of
each quarter January—March 28 April 2021
April—June 28 July 2021
PAYG Withholding 1 July 2020—30 June 2021
Individual income tax rates—Australian Taxable income Tax on this income
residents
These rates do not include the Medicare $0—$18,200 Nil
levy of 2%.
$18,201—$45,000 19c for each $1 over $18,200
$45,001—$120,000 $5,092 plus 32.5c for each $1 over
$45,000
$120,001—$180,000 $29,467 plus 37c for each $1 over
$120,000
$180,001 and over $51,667 plus 45c for each $1 over
$180,000
Individual income tax rates—Foreign Taxable income Tax on this income
residents
Foreign residents are not required to $0—$120,000 32.5c for each $1
pay the Medicare levy
$120,001—$180,000 $39,000 plus 37c for each $1 over
$120,000
$180,001 and over $61,200 plus 45c for each $1 over
$180,000
05Quick Reference Guide 2021
PAYG Withholding 1 July 2020—30 June 2021
Working holiday makers Taxable income Tax on this income
Working holiday makers are not $0—$45,000 15c for each $1
required to pay the Medicare levy
$45,001—$120,000 $6,750 plus 32.5c for each $1 over
$45,000
$120,001—$180,000 $31,125 plus 37c for each $1 over
$120,000
$180,001 and over $53,325 plus 45c for each $1 over
$180,000
PAYG Withholding remittance due dates 1 July 2020—30 June 2021
Small withholders (withholds $25,000 Quarter Payment and lodgement due dates
or less per year)
July—September 28 October 2020
October—December 28 February 2021
January—March 28 April 2021
April –June 28 July 2021
Medium withholders (withholds 21st day of the month following the month in which the withholding is made, unless
$25,001—$1 million per year) the entity is a deferred BAS payer, where it is the 28th day.
Large withholders (withheld more Day of withholding Day of remittance
than $1 million in a previous financial
Saturday to Sunday Second Monday after that day*
year, or is part of a company group
that withheld more than $1 million in Monday to Tuesday Following Monday*
a previous financial year)
Wednesday Second Thursday after that day
Thursday to Friday Following Thursday
* Denotes lodgement or payment may be made on the first business day after the due date as the due dates fall on a weekend or public holiday
06Quick Reference Guide 2021
Payroll Tax 1 July 2020—30 June 2021
NSW VIC QLD WA SA ACT TAS NT
Annual $1.2 $650,000 $1,300,0003 $1 million5 $1,500,000 $2,000,000 $1,250,000 $1,500,0008
Australian million
wages
threshold
Payroll tax 4.85 4.85/ 4.75/ 5.50-6.54 4.956 6.85 4.0/ 5.5
rate (%) 2.02/ 4.952 6.17
1.21251
Due dates Returns Lodgement and payment due
Annual reconciliation return 21 July 2021
28 July 2021 (SA only)
Monthly returns 7th of the following month*
* Denotes lodgement or payment may be made on the first business day after the due date as the due dates fall on a weekend or public holiday
1 The lower 2.02% rate applies to business where at least 85% of their Victorian payroll goes to regional employees. The 1.2125% rate is available for regional employers based in
bushfire affected areas.
2 For employers paying annual Australian taxable wages of $6.5 million or less, the general rate of 4.75% applies. For Australian taxable wages of more than $6.5 million, a marginal
rate of 4.95% applies. From 1 July 2019, regional employers may be entitled to a 1% discount on the rate.
3 This threshold reduces by $1 for every $4 of Australian wages over $1.3 million. Businesses with annual taxable wages of $6.5 million or more will be subject to payroll tax of 4.95% of
their entire taxable wages.
4 For employers paying annual Australian taxable wages of $100 million or less—the general rate of 5.5% applies. For taxable wages of between $100 million and $1.5 billion—a
marginal rate of 6% applies, and for employers paying taxable wages of $1.5 billion or more—a marginal rate of 6.5% applies.
5 This threshold reduces gradually for employers with annual taxable wages between $1 million and $7.5 million. Businesses with annual taxable wages of $7.5 million or more will be
subject to payroll tax at 5.5% on their taxable wages.
6 For employers paying annual Australian taxable wages between $1.5 million and $1.7 million, a variable rate from 0% to 4.95% applies, then phases up to general rate of 4.95% for
payrolls above $1.7 million.
7 A reduced rate of 4% applies for taxable wages between $1.25 million and $2 million per annum. An exemption applies for certain wages paid by an interstate business that has
relocated to regional Tasmania. Rate of 6.1% applies for taxable wages over $2 million per annum.
8 This threshold reduces by $1 for every $4 of wages over $1.5 million. Businesses with annual taxable wages of $7.5 million or more will be subject to payroll tax of 5.5% on their
entire taxable wages.
07Quick Reference Guide 2021 Elizma Bolt Steven Batrouney Partner—Sydney Partner—Melbourne Tel: +61 2 9322 7614 Tel: +61 3 9671 7247 Email: ebolt@deloitte.com.au Email: sbatrouney@deloitte.com.au Donna Rubbo Stewart Williams Principal—Sydney Partner—Brisbane Tel: + 61 2 9322 7410 Tel: + 61 7 3308 7301 Email: drubbo@deloitte.com.au Email: stewwilliams@deloitte.com.au Annaleise Fern George Kyriakacis Account Director—Sydney Partner—Perth Tel: + 61 2 9322 5531 Tel: + 61 8 9365 7112 Email: afern@deloitte.com.au Email: gkyriakacis@deloitte.com.au Paul Tyler Ben Tay Account Director—Sydney Account Director—Perth Tel: + 61 2 9322 5622 Tel: + 61 8 9365 7093 Email: ptyler@deloitte.com.au Email: btay@deloitte.com.au Rhys Cormick Account Director—Canberra Tel: + 61 2 6263 7157 Email: rcormick@deloitte.com.au This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms and their affiliated entities are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. About Deloitte Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our network of member firms in more than 150 countries and territories serves four out of five Fortune Global 500®companies. Learn how Deloitte’s approximately 286,000 people make an impact that matters at www.deloitte.com. About Deloitte Asia Pacific Deloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. Members of Deloitte Asia Pacific Limited and their related entities provide services in Australia, Brunei Darussalam, Cambodia, East Timor, Federated States of Micronesia, Guam, Indonesia, Japan, Laos, Malaysia, Mongolia, Myanmar, New Zealand, Palau, Papua New Guinea, Singapore, Thailand, The Marshall Islands, The Northern Mariana Islands, The People’s Republic of China (incl. Hong Kong SAR and Macau SAR), The Philippines and Vietnam, in each of which operations are conducted by separate and independent legal entities. About Deloitte Australia In Australia, the Deloitte Network member is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms. Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 8,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit our web site at www.deloitte.com.au Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network. © 2021 Deloitte Touche Tohmatsu. 08
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