Toll Remote Logistics - TOLL Group

and budget update 2011
Key budget announcements
Fringe Benefits tax (FBt) and cars – flat 20 percent
valuation rate to apply
The FBT treatment of cars will change to eliminate the
unintended incentive for people to drive their vehicle further
than necessary in order to obtain larger tax concessions. The
change will replace the current four-tiered statutory formula
that applies a sliding scale of rates to calculate the taxable
value of car fringe benefits with single flat rate of 20 percent,
regardless of the number of kilometres travelled.
The changes will only apply to new vehicle contracts entered
into after 7.30pm (aesT) on 10 may 2011 and will be phased
in over four years.
The implications for Toll Group and its people are
as follows:
employees who use their vehicles for a significant amount of
work-related travel should consider using the ‘operating cost’
(or ‘log book’) method. This is particularly relevant for people
who have salary packaged a car with a statutory fraction
below 20 percent.
salary packaging cars may become more attractive for people
where the statutory fraction would otherwise have been greater
than 20 percent (i.e. for low kilometre users).
The Tax, Finance and Human resources functions have
partnered to introduce the employee contribution method on
novated motor Vehicle leases which can increase benefits
to employees who structure a motor vehicle through their
salary package. employees with a taxable income of less than
a$180,000 will receive more after-tax pay in their pocket as
a result of this arrangement. This is because FBT at a rate of
46.5 percent is transferred to the employee’s personal marginal
income tax rate.
Refund of excess concessional contributions
eligible individuals who breach the concessional contributions
cap by up to a$10,000 will be provided with a one-off option
to request any excess contributions to be refunded to them.
This new refund option will only apply to first time breaches
from 1 July 2011. This measure makes the superannuation
system fairer by allowing those who have breached the cap
for the first time, by a$10,000 or less, the option to have these
contributions refunded and taxed at their potentially lower
marginal tax rate rather than the 46.5 percent effective excess
contributions tax rate.
Higher superannuation contribution caps for over 50s
This Budget confirmed the 2010–11 Budget announcement
that a higher concessional contributions cap will apply from
1 July 2012 for people over 50 with superannuation balances
under a$500,000.
Superannuation information on payslips
employees will receive information on their payslips about
the amount of superannuation actually paid into their account.
employees will also receive quarterly notification from their
superannuation fund if regular payments cease, with effect
from 1 July 2012.
Other measures affecting individuals
Other measures in the Budget include:
• Changes to the delivery of the low income tax offset
• increase in the medicare levy low-income thresholds
• phase out of the dependent spouse tax offset
• Changes to Family Tax Benefits. <
TOLL GROup
June–auGusT 2011
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