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Re: Record-keeping threshold?

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We have a small business.  We have recently had staff from larger organisations say that they were not required to provided receipts for reimbursements where they were less that $50.  I am not aware of this exception in the tax legislation, but I'm happy to be corrected!  Is there a threshold for the requirement to provide receipts?  Or are these people coming from environments where there may be a policy that documentation is not required for anything less than $50?  Could you please clarify? 

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Hi @FluentA,

 

Thanks for your question!

 

The reimbursement of expenses for employees are fringe benefits that are subject to FBT. 

 

Even though the reimbursement of an expense of less than $50 might be exempt from FBT, the employer still needs to keep records of all fringe benefits provided so that they can demonstrate how they worked out their FBT liability. 

 

There is no threshold for the employee providing the receipts to the employer. You can find more information about recording keeping for FBT on our website.

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Most helpful response

ATO Certified Response

VIP

Replies 0

Hi @FluentA,

 

Thanks for your question!

 

The reimbursement of expenses for employees are fringe benefits that are subject to FBT. 

 

Even though the reimbursement of an expense of less than $50 might be exempt from FBT, the employer still needs to keep records of all fringe benefits provided so that they can demonstrate how they worked out their FBT liability. 

 

There is no threshold for the employee providing the receipts to the employer. You can find more information about recording keeping for FBT on our website.