Remunerator News

Nov 5 2014

Odometer Readings for Novated Leases

Contracts entered into before the 20th May 2011

If your employees are salary packaging a novated lease entered into before the 20th May 2011 it is essential that they continue to provide us with up to date odometer readings. This is to assist us to identify if they are not on track and advise of the travel that is required to minimise any impact of Fringe Benefits Tax.

FBT will be finalised on the 31st March 2015 with their closing odometer reading. If a final odo reading is not received, the last known reading held in our system will be used for the calculation and an FBT liability may be due. Please refer to the table below for further information regarding the required KM’s to travel per Statutory Rate;

table

Keep your odo reading up to date by lodging via our smartphone apps or your vehicle dashboard at www.remunerator.com.au/login.


 

Contracts entered into after the 20th May 2011

As a result of the Federal Government’s Henry Tax Review announcement in 2011, the 2014-15 FBT year has seen an end to the old statutory rate brackets for  novated leases entered into after the 20th May 2011. FBT will be charged at the Statutory Rate of 20% regardless of distance travelled from April 2014.

It is still a great idea for your employees to keep their odo readings up to date in our system, so that we can continue to effectively manage their salary packaging. For administrative purposes the last known odometer reading held in our system will be used as your closing odometer reading on the 31st March 2015.