FBT and Payday super update

For superannuation contributions paid as part of an employee’s termination, do these need to be paid within seven days, or can they be included in the next scheduled payroll super payment?
If the termination payment is made in the usual pay cycle, then the usual 7 day time limit applies. If it is paid out of cycle, then the superannuation would be due with the next pay cycle payment.

How is the ‘Qualifying Earnings (QE) day’ determined for payments made outside regular pay cycles?
The superannuation is payable with the next regular pay cycle payments.

Does the Victorian parking levy for the Richmond area form part of the car‑parking cost for FBT purposes?
No. The value of car parking benefits is either the lowest fee charged for all day parking within 1km, or based on a market valuation from a qualified valuer.

What happens if an employee’s Self‑Managed Super Fund (SMSF) is not regulated and employer contributions are rejected?
You will need to obtain details for another fund of the employee.

How can the employer monitor the superannuation cap when the employee has two or more paid jobs?
Each employer can monitor the concessional cap separately. It is possible for the employee to apply for an exemption for an employer if they will already reach the cap with another employer. It is also possible to pay more than the concessional cap – the employee just has a higher rate of tax on the excess.

Has the ATO indicated that they are comfortable with the automation approach for the entertainment benefits under certain amounts?
The ATO has not endorsed any particular thresholds. We consider that typically less than 16 entertainment benefits of less than $300 each and totalling less than $1,000 for the year, will typically qualify as minor, but this is always a case by case consideration. 

How should additional salary sacrifice contributions be treated under the new arrangements?
There is no time restriction on when additional superannuation must be paid under salary packaging arrangements. Although it may be easiest to pay it along with the employer's compulsory contributions.

During the transition to the new superannuation payment regime, some employees may exceed the $30,000 concessional cap in FY27. Has the ATO indicated whether any transitional concessions will apply?
The government announced (on the day of this webinar) that they will make a law change to address this. We are now waiting on draft legislation.

Are contractors paid by invoice subject to the new super rules?
Yes, if the contractor payments are subject to superannuation, then the new timing rules apply. However, if they are paid outside usual payroll pay cycles, then the 7 days only starts from the payroll pay date following the payment to the contractor. 

Are gym memberships subject to FBT?
Typically, gym memberships are subject to FBT because they don't qualify for the minor benefit exemption. The value of each payment may be over $300 per person and/or the payments may be regular.

Are flu shots exempt from FBT?
Yes, flu shots are typically exempt from FBT.

Is the ATO conducting many FBT audits?
The ATO is quite active in data matching vehicle registrations to FBT returns. So, vehicles are typically the area that trigger ATO FBT reviews.