Hi all - your help would be greatly appreciated as I'm getting conflicting advice.
This query relates to a Novated Lease that a staff member has requested. The NL company has provided the below information:-
1) the FBT base value is $80,107.90 and the fortnightly payment is $1,057.14 (including $96.10 GST).
The vehicle packaging schedule is calculated to cover lease payment ($715.96); budgets for maintenance, tyres, fuel, comprehensive insurance, rego and CTP ($228.93); admin fees ($16.15) and GST (96.10) giving a total of $1,057.14/fortnight. The NL company will bill the employer $1,057.14/fortnight.
The fortnightly payroll calculations have been notified as:-
1) Gross rental (inc GST) $1,057.14
2) Pre-tax salary sacrifice (exl GST) is $400.85
3) Input tax credit (claim on BAS) is $40.08
4) Post-tax ECM employee contribution (incl non-claimable GST) is $616.21
This lease is to be used by the staff member for 100% private use and the above deductions from the wages shows the entire fortnightly lease cost is being born by the employee (via pre & post tax deductions).
What if any is the FBT liability for the employer? What is the correct way to handle this from an accounting point of view.
I look forward to your help.
Regards
JAC
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