Notice of Rulings 5 June 2024
The Commissioner of Taxation, Rob Heferen, gives notice by notifiable instrument under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 of the following public ruling, copies of which can be obtained from ato.gov.au/law
NOTICE OF ERRATUM |
Ruling number | Subject | Brief description |
TD 2024/2 | 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 1 April 2024 | This Erratum amends a typographical error in Taxation Determination TD 2024/2. This Erratum applies from 27 March 2024. |
Overview
The Notifiable Instrument F2024N00473 was issued on 5 June 2024 by the Commissioner of Taxation, Rob Heferen, under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953. This instrument serves to correct a typographical error in Taxation Determination TD 2024/2 concerning fringe benefits tax, specifically addressing 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 1 April 2024. The policy objective behind this Erratum is to ensure the accuracy and integrity of the tax determinations, thereby supporting compliance and fairness within the tax system.
Scope and Application
The Notifiable Instrument F2024N00473, issued by the Commissioner of Taxation Rob Heferen, pertains to an erratum concerning Taxation Determination TD 2024/2, which addresses the 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 1 April 2024. This public ruling, accessible via the Australian Taxation Office's website, corrects a typographical error in the original determination. The erratum applies from 27 March 2024, impacting entities and individuals who need to comply with the corrected figures for fringe benefits tax purposes during the specified tax year. The instrument extends its reach to all taxpayers, employers, and employees involved in the provision and receipt of living-away-from-home allowances, ensuring that the correct and amended thresholds and guidelines are followed in tax assessments and reporting.
Key Provisions
The Notifiable Instrument F2024N00473 (Erratum) amends a typographical error in Taxation Determination TD 2024/2, which deals with fringe benefits tax (FBT) concerning reasonable amounts for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit. The amendment corrects a specific error in the original determination, which was published on 27 March 2024. This correction is significant for taxpayers and employers to ensure compliance with the correct provisions of the Fringe Benefits Tax Assessment Act 1986.
Under the corrected Taxation Determination TD 2024/2, the requirements for determining the reasonable amounts for food and drink expenses have been clarified to ensure taxpayers and employers are guided accurately. The amended determination provides specific details on the allowable deductions and inclusions for FBT purposes, ensuring that the taxpayers and employers can correctly calculate and report the fringe benefits tax liabilities for the financial year commencing 1 April 2024.
The obligations imposed by the amended Taxation Determination TD 2024/2 include ensuring that employers correctly calculate and report the fringe benefits tax for their employees receiving living-away-from-home allowances. Employers must ensure that the amounts reported for food and drink expenses align with the corrected figures outlined in the determination. This involves reviewing the current records and making any necessary adjustments to ensure compliance with the FBT provisions.
The consequences of non-compliance with the corrected Taxation Determination TD 2024/2 can be significant. Failure to correctly calculate and report fringe benefits tax in accordance with the amended determination may result in penalties and interest on any underpaid tax. The penalties for non-compliance can include fines, and in severe cases, prosecution may follow. The maximum penalties for providing incorrect FBT statements or returns can include fines of up to $2,100 per offence for individuals and up to $10,500 per offence for entities, along with potential criminal charges for intentional or reckless disregard of the tax laws. Therefore, it is crucial for employers and taxpayers to adhere to the corrected provisions to avoid these serious consequences.