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ATO reminder about RFB

Employers are reminded that the ATO will be focusing on businesses operating outside the fringe benefits tax (FBT) system in 2013-14.

The ATO will be paying particular attention to those employers who are failing to fulfil their reportable fringe benefits (RFB) amount and FBT obligations.

Employees should be recording the value of fringe benefits provided to each employee.

If the value of certain fringe benefits provided exceeds $2000 in an a FBT year (which is 1st April to 31st March), employers need to record the gross taxable value of the benefits in the employee’s payment summary for the corresponding income year (which is the 1st July to 30th June).

Employees need to be aware that FBT is an employer liability, and they cannot consolidate FBT returns.

Generally, if there is an RFBA, there will be an FBT liability. However, this does not occur where benefits are exempt from FBT because an employee works in or for a public benevolent institution, health promotion charity, hospital, public ambulance service or is a live- in residential care worker.

If employees do not correctly report their RFB amounts, it may affect their government benefits and obligations.

Posted on 13 February '14 by , under Tax.

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What to consider when consolidating your super

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

  • Exit fees
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  • Investment options
  • Ongoing service fees
  • Performance of the funds

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready:

  • Your tax file number.
  • Proof of identity. This could include your driver's license, birth certificate or passport.
  • Your fund's superannuation product identification number (SPIN).
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  • Details of your previous fund.

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