GST & FBT
School of Medicine
Agenda
• GST
– GST Basics
– Receivables
• Donations
– Payables
• Compliant Tax Invoices
• Types of Transactions
• FBT
– Taxable Benefits
– Entertainment
1
GST Basics
• GST is a broad based consumption tax,
generally charged at 10% on most goods
and services consumed in Australia.
• As an enterprise who is registered for
GST, the University :
– Collects GST on sales
– Pays GST on purchases
• Claim Input tax credits
GST Basics
• GST : 10% or 1/11th.
• Zero Tax / GST Free : Non taxable supply.
• NA : Out of scope
– No supply or no consideration
– Supplier not registered for GST
• Export tax : (Receivables) Supplies not
connected with Australia.
• Input Taxed : Where GST is not charged but ITC
can not be claimed.
2
Receivables & GST
Cost Centre Revenue
$20,000
Sales
Customer : $22,000
Central GST
Account
$2,000
ATO
Receivables & GST
• GST (Tax Code : C)
– Consulting services
• GST Free (Tax Code : F)
–
–
–
–
course fees for recognised courses
course materials for recognised courses
academic transcripts
medical services
• Out of scope (Tax Code : NA)
– Government appropriations, donations & gifts
– There is no supply (eg reimbursements)
• Export Tax (Tax Code : E)
– Supplies not connected with Australia
3
Donations & Gifts
• What is a donation ?
– Gifts, where no material benefit to the donor
– Some grants, unless they are made for a
return for services or an appropriation
– Unconditional sponsorship
• ITEC & DGR status
Donations & Gifts
Procedure
• All donations are receipted to the Gift Fund in the first instance.
01.822.00429.0502
• Funds are then transferred to the CC/Project using account code
‘0991’.
• Tax Code : N/A
• The receipt issued from Cashiers should show the following:
– Flinders University ABN
– Words “TAX INVOICE” AND “Gift”
– Date of receipt
– Amount of receipt
– Name of donor
4
Payables & GST
Cost Centre Expense
$500
Purchases
Supplier : $550
Central GST Acct
$50
ATO
Payables & GST
• Input Tax Credits (ITC) are claimed from
ATO on acquisitions.
–
–
–
–
Supplier must have ABN
Supplier must be registered for GST
Compliant Tax Invoice (purchases > $82.50 GST incl)
Taxable Supply
5
Payables & GST
• GST Free (Tax Code : Z)
– GST Free supplies (eg. basic food, education,
medical services)
• Not applicable (Out of scope, Tax Code : NA)
– Supplier is not registered for GST
– Supplier doesn’t provide compliant Tax Invoice
– International supply (eg. airfares)
Payables & GST
Spendvision BasWare Receivables
GST
GST Free
10% GST
0% GST
C
Z
C
F
Out of Scope
N/A
NA
NA
GST Only
Input Taxed
Duty Tax
Input Tax
G
I
I
-
-
E
Export
6
Compliant Tax Invoice
< $1,000
> $1,000
ABN of Supplier
Y
Y
‘Tax Invoice’
Y
Y
Date of Issue
Y
Y
Supplier Name
Y
Y
Description of goods/service
Y
Y
‘the total price includes GST’
or the GST amount
Y
Y
Name of recipient
Y
Address or ABN of recipient
Y
Quantity of goods/services
Y
7
• What documents do I need if the company is not registered
for GST ?
– Invoice
– If a company is not registered for GST then it will not charge
GST and should not provide Tax Invoice
– The words ‘Not registered for GST’, if possible.
– Tax Code : NA
• What documents do I need if the supplier doesn’t have an
ABN ?
–
–
–
–
–
–
Supplier is not an enterprise (private capacity or hobby)
Supplier is a non-resident
Total payment less than $75
Supplier must not be employee
Statement by supplier
46.5% must be withheld
8
Payables : Transactions
• Deposits : If GST charged and a compliant tax invoice
is supplied then we can claim ITC : Tax Code : C
– Security Deposit
• No supply (eg keys)
• GST only applies if (and when) deposit is forfeited
• Tax Code : N/A
– Part-payment
• Depends on method used by supplier
• If part payment includes GST, then can claim ITC
– Tax Code : C / 10% GST
Payables : Transactions
• Travel reimbursements
– Mileage : no supply, so Tax Code : NA
– Fuel :
• If tax invoice submitted for payment & GST included. Tax
Code : C / 10% GST
• If no tax invoice, Tax Code : NA
• Overseas transactions
– Tax Code : NA
– Only where supplier is registered for GST in Australia
9
Cheque
• Used for reimbursing
students or external
requisition
people.
If supplier is registered
for GST and provides
Tax Invoice
GST Free supplies (Z)
or
No Tax Invoice (NA)
External Entities for GST
•
•
•
•
•
•
CRH, AHURI, CGS
Flinders Partners
FRM
FCCS
FMC
Flinders University Child Care Centre
10
GST Questions ?
FBT Basics
• Tax payable on a non-salary benefit provided to
an employee.
• Employee : current, former or future.
• The FBT rate is 46.5% and is calculated on a
grossed-up value of the benefit.
– Eg. a benefit worth $1,100 (tax inclusive)
= $1,100 x 2.0647 x 46.5%
therefore FBT payable is $1,056.
• Payroll tax is also calculated on any FBT paid
(5%).
• Some benefits are reportable benefits.
11
FBT
• Is there a fringe benefit ?
“Benefit” includes any right, privilege, service or facility.
–
–
–
–
–
–
–
Cars
Entertainment
Travel
Gifts/Prizes
Expense reimbursements
Salary sacrifice arrangements
Housing (Free or reduced-rate)
• Is the benefit taxable ?
– ‘Otherwise deductible’
• (Business use) Mobile Phones & ADSL
• Education & Professional Development (not HECS)
• Business travel
– Minor & infrequent benefits exemption
• < $300
• Doesn’t apply to entertainment for tax-exempt bodies
• Gifts/Prizes
– Property consumed on business premises
• Books & Stationery
– Exempt benefits
• Some relocation costs
12
Taxable benefits
• Personal use of mobile phones or ADSL : taxable
• Work cars provided for personal use
– Work-to-home travel : taxable
– Fleet vehicles garaged at home : taxable
• Personal travel
– Incidental to business trip : non taxable
• HECS : not ‘otherwise deductible’ thus taxable.
• Entertainment
Taxable Benefits
• Entertainment
– Tea & Coffee : not entertainment, non taxable
– Light refreshments
• Meeting/Business context : not entertainment, non taxable
• In house, unless eligible seminar (Sage restaurant not
considered in house – open to public)
– Alcohol
• Appearance of recreation : taxable
• Incidental to provision to third party : non taxable
• Gift (< $300) : non taxable
– Meals while travelling (for travelling employee only) :
non-taxable
– Recreation eg golf day or theatre tickets : taxable
13
Entertainment
•
Meals and entertainment provided to staff/associates, subject to FBT
should be coded to 2050
•
Any FBT will then be calculated and charged to your project, against
code 3608
Eg. Current balance in 500.12345.2050
= $56
1.
Multiply by 10% for GST inclusive figure
= 56 x 10% = $61.60
2.
Multiply by Gross up rate (2.0647) & FBT rate (46.5%)
= $61.60 x 2.0647 x 46.5% = $59.14
•
Meals and entertainment for visitors/clients should be code to 2057, tax
code ‘I’ [Input Tax]
•
Provision of food/drink is determined not to be entertainment should be
coded to 2051, tax code ‘C’ [for employees & visitors]
FBT Questions ?
14