Federal Budget 2012
Have been informed that the Federal Budget has implications for Airline Employee Staff Travel Benefits. Does anyone have any info that can expand on this, Google is proving unhelpful at this stage.
|
There will be an increase to the Fringe Benefits Tax (FBT) that the goverment will collect from airlines for allowing staff discounted or free flights. How the airlines absorb (or pass on) the increase in order to help their bottom lines is obviously yet to be seen...
New tax hits foreign investors, airlines - Federal Budget 2012 (Australian Broadcasting Corporation) Just another nail in the coffin Julia :hmm: Fuel-Off :ok: |
This is in ADDITION to the Carbon Tax which raised fares by 2.5% to 7% earlier this year for Qantas and Jetstar respectively as examples.
:ugh: |
DON'T get me started.:(
|
From: www.budget.gov.au
Fringe benefits tax — reform of airline transport fringe benefits (Table of revenue deleted due formatting) The Government will update the method of determining the taxable value of airline transport fringe benefits from stand‑by value to market value. This measure will apply to benefits provided after 7.30pm (AEST) on 8 May 2012. This measure is estimated to increase revenue by $12.0 million over the forward estimates period. The measure is also estimated to increase GST payments to the States and Territories by $4.0 million over the same period. An airline transport fringe benefit may arise when an employee of an airline or travel agent is provided with free or discounted travel on a stand‑by basis. The taxable value of airline transport fringe benefits is currently the stand‑by value of the benefit less the employee contribution. This method was developed when stand‑by travel was a feature of commercial airline pricing and staff could be displaced from a flight up to the time of boarding. The concept of stand‑by travel, however, is no longer commercially relevant as airlines now use discounted pricing to optimise passenger levels. ** This reform progresses another recommendation of the Australia's Future Tax System review, and builds on the Government's growing record of tax reform. ** Maybe that's why Q ran the "confirmed category" Staff Travel survey recently.:rolleyes: |
Nice work Joolia. I imagine nothing is being trimmed from the Pollies troughs though?
F:mad:ers |
This method was developed when stand‑by travel was a feature of commercial airline pricing and staff could be displaced from a flight up to the time of boarding. |
I think the point they are trying to make (poorly) is that as a commercial passenger you used to be able to buy a standby ticket to somewhere and wait all day before being unloaded.
I don't follow how now that the airlines don't utilise this feature any more as a pricing strategy why our 'standby' tickets are now costed as per a full fare ticket though given that we still get bumped. Given how this Labor government has dealt with boat people, pink batts in ceilings, school halls, fuel watch, grocery watch, defence, immigration, cash spray outs to all and sundry are we really surprised that they chose to go down this road? |
Not to mention the 700% increase in the passenger movement charge from $8 to $55. That will be of great assistance to a sector already struggling with a drop in inbound tourism.
This is on top of the budget cuts (sorry, "productivity dividends") in customs and quarantine which lead to bigger queues and length delays for inbound tourists. Ask yourself whether these customers of Australia, who are coming to experience everything we have to offer, are getting value for their 55 bucks. |
Yet they Government has extended the lease on the Challengers so they can still do their trips from Canberra to Sydney and Melbourne. If they wanted to save money why not base a few 38 SQN 350's in Canberra and use them for these flights.
Just remembered, pollies only like travelling in jets no matter what the cost. |
Not to mention the 700% increase in the passenger movement charge from $8 to $55. That will be of great assistance to a sector already struggling with a drop in inbound tourism.
I think a bit of a miss read, the Australian says, increase of $8 to $55. Anyway still too much. Aviation is an easy target for taxes. I like many crew rely of staff travel to get too work, so that my wife can continue to work in her job in our current town. I just want these people to go away, this is MY money not yours. |
Oops, that's what I get for reading the tabloids.
Tabloid paper said from 8 dollars to 55 dollars. Sorry.:\ Still, you get thie idea! |
The Government will update the method of determining the taxable value of airline transport fringe benefits from stand‑by value to market value. Aren't staff travel benefits based on something like ID90 to full fare anyway? The full fare being the "market value"? And isn't that what FBT is currently based on? No doubt airlines that value their employees will provide an explanation to this before they jack up the price of "stand-by" staff tickets! :ugh: |
Originally Posted by The The
OK? So what was the "stand-by" value anyway? Given that there has not been "stand-by" fares for eons!
|
Slight thread drift, but does anyone know how UK fringe benefit rules differ from Oz with respect to staff travel? Just like to know if there's a good reason why a seat from Sydney to Hong Kong on QF staff travel costs 260, whilst VS charge their staff less than half this?! :(
I don't know what you're all whining about. Surely we can afford to pay a bit more for our tickets. Airline pilots are rich, especially those on the north shore. Just ask Juliar. :mad: |
The labour government could not organize a newspaper run.
|
Neither could the Labor government.
|
Do the Illegal Immigrants have to pay the 55 bucks? Why don't we just send a large ferry to Indonesia, let me see $55 bucks @ 200 head, hmmm, well it would pay for the fuel. The rest is for us to pay for.:{
|
The labour government could not organize a newspaper run. |
His missus must be very forgiving, my missus would carry out some surgery that would require a plastic surgeons help, if it was me.:{
|
All times are GMT. The time now is 09:14. |
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.