What are the extra taxes referred to in the ABN application?

Fringe Benefits Tax

This tax is paid by employers based on the benefits they provide employees, which may or may not be part of their salary package. Fringe benefits can include company cars, daycare, educational funding, profit sharing, private health insurance, entertainment as examples.

You can elect to register for fringe benefits tax as part of your ABN application with EasyCompanies. Alternatively, you can register directly with the ATO. The fringe benefits tax year extends from 1 April to 31 March.

Fuel Tax Credits

Registration for this tax entitles you to a credit for the fuel tax, usually experienced as a customs or excise tax, included in the price of the fuel you use in the conduct of your business. In most cases, companies operating heavy machinery, vehicles or equipment will be most likely to apply for fuel tax credits.

 N.B. You must be registered for GST in order to apply for Fuel Tax Credits

Wine Equalisation Tax (WET)

This a tax generally paid by wine manufacturers, wholesalers and traders, applicable to the final wholesale transaction, for e.g. a wholesaler to a bottle shop or a winery to a restaurant. The destination is from where the direct consumer will purchase the wine.

It is determined from the value of wine as a 29% tax. This is usually added to the final price of the wine, so that the cost is laterally experienced.

WET is reported and paid in the same way as other business taxes, via the activity statement.

Luxury Car Tax

If you intend to import or sell luxury cars, then this tax may apply to you. LCT is a 33% tax payable by luxury car importers or vendors based on the price of luxury vehicles that exceeds the LCT threshold. For the 14/15 financial year the threshold was set at $61, 884. This tax only applies to the amount above the LCT threshold. For e.g. for a car valued at $70, 000, you would pay LCT on $8, 016.

 N.B. You must be registered for GST in order to apply for/pay LCT

This information is of a general nature only and does not constitute professional advice. You must seek professional advice in relation to your particular circumstances before acting.

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