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FBT Implication for Visa subclass 482 expenses

Initiate

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Hi All,

I was wondering if you could advice on the following scenario:

 

A business organization paid the Visa 482 Temporary Skill Shortage fees to the Immigarion Department for sponsoring one of its empoyees.

There are no relocation implication meaning the sponsored employee was already in australia.

As you might be aware the Visa process and realting fees are made up of the below components:

 

1) Sponshorip whose main applicant is the company

2)Nomination whose main applicant is yet the company

3)Sponsor application whose main applicant is the employee. 

 

The fees referring to point 3 which are usually paid by the employee in this scenario were paid by the business. In the light of that, just wondering if the amount paid by the employer attracts FBT and whether or not they are tax deductible for the business.

 

Thanks

Cardis

 

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Most helpful response

ATO Community Support

Replies 0

Hi @Cardis

 

This is considered an expense payment fringe benefit.

 

The taxable value of an expense payment fringe benefit may be reduced by the amount the employee would have been entitled to claim as an income tax deduction if you had not reimbursed them. However, the costs of obtaining a visa in not tax deductible as they must be directly related to earning assessable income. They are considered private in nature. This means the full amount is taxable under FBT.

 

However, your business can still claim an income tax deduction for the amount of fringe benefit provided.

 

You can read about expense payment fringe benefits in our FBT Guide for Employers, and about deductibility of visa expenses in ATO ID 2002/208.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Cardis

 

This is considered an expense payment fringe benefit.

 

The taxable value of an expense payment fringe benefit may be reduced by the amount the employee would have been entitled to claim as an income tax deduction if you had not reimbursed them. However, the costs of obtaining a visa in not tax deductible as they must be directly related to earning assessable income. They are considered private in nature. This means the full amount is taxable under FBT.

 

However, your business can still claim an income tax deduction for the amount of fringe benefit provided.

 

You can read about expense payment fringe benefits in our FBT Guide for Employers, and about deductibility of visa expenses in ATO ID 2002/208.