Required: Advise E Pty Ltd regarding the Fringe Benefits Tax implications of the facts below. You are not required to calculate the actual FBT liability.

E Pty Ltd is an engineering firm that employs Naomi, who is entitled to a salary of $150,000. She reaches a salary sacrifice arrangement with E Pty Ltd where, in exchange for giving up part of her salary, E Pty Ltd will pay for:

• A laptop (that she can keep) that she intends to mostly use for work.
• Extra superannuation contributions.
• The interest expenses on her investment property loan.

PART B

Required: Advise Newtech as to the GST implications for the following transactions:

An IT development firm, Newtech, which is registered for GST, undertakes the following transactions for the GST period (where GST applies, prices are GST inclusive):

• Purchases of fresh fruit from a major supermarket for the staff room: $1000.
• Purchase of a new laptop from a major department store: $2000.
• Payment of staff salaries: $300,000.
• Payment of water utilities bill: $500.
• Sales of services: $600,000.

Answer rating: 100% (QA)

Answer Part A Fringe benefits are bonuses and work allowances that are given in addition to the employees compensation There can be many types of benefits under this umbrella term and the most common ... View the full answer