Employers: Beware of FBT on "The arranger provisions"!
It is generally understood that for fringe benefits tax (FBT) to apply, the benefits paid are usually in respect of an employment relationship.
The Arranger Provisions
The FBT law provides that an employer can be liable for FBT even if the benefits are provided to staff by a third party or an "associate" of your business. In other words, there could still be an FBT liability even if provided indirectly.
Rental Properties ATO Focus on "initial repairs"
The scenario where rental properties have work done on them shortly after the property is purchased, has lead to the term "initial repairs"
Accesing the money in your SMSF to pay benefits is generally only allowed when you reach what's called your "preservation age" and meet one of the specific conditions of release - for example, you turn 65.
Changing business structure may be one of your lower priorities, and it's easy to stay with the status quo. But the fact is that depending on your circumstances there may be benefits to changing your business structure.
The business structure that you build your business on can determine:
how much tax you pay
your responsibility as a business owner
your potential personal liability
your asset protection, and
ongoing costs and volumes of paper work for your business