Welcome to the first edition of our client based information Newsletter – we intend to make available wherever possible information that we believe will be of interest and use to our clients.

Initially we intend to issue the Newsletter on a quarterly basis but this may change as circumstances dictate. We will always seek contributions for the Newsletter from our Service Providers, Underwriting Partners and Steadfast Group Ltd who is the largest Broker cluster group in Australia as we have a shareholding in Steadfast.

Hopefully the information will be helpful and at times relevant to your personal and/or business position – we know that at times we are bombarded with with all sorts of information but as your Insurance Broker we firmly believe that a Newsletter such as this is vital to distribute important information in a format that allows broad distribution and is timely.

This first edition contains some FBT issues and methods to improve staff retention, some pertinent advice on Business Travel Insurance and some changes to the ACT Workers Compensation Act 1951.

We trust that you find the information useful and we look forward to supplying further information in subsequent issues but don’t forget that if you have any queries with respect to any form of insurance do not hesitate to contact our office.

Tax Tips to Reward Staff

Staff retention and workplace enthusiasm are key drivers for successful business, so a tax effective way of recognising staff performance can benefit both sides.

The Fringe Benefits Tax (FBT) laws provide a challenge to rewarding employees without incurring a tax liability and/or an administration burden however there are some items that do not incur FBT and are simple to administer. These include:

Certain Work-Related Items
These are benefits which are specifically free from any FBT and offer significant savings opportunities to employers. Examples include laptop computers (one per FBT year), electronic diaries, pda’s & mobile phones (where there is a predominate business use).

Car Parking Benefits
An exemption applies to car parking benefits provided to employees of small business employers in limited circumstances.  There are certain conditions that must be met for this exemption to apply.

Minor Benefits
These are items that have a value of less than $300 (inc GST) which are provided infrequently.  An employer would generally be able to claim full tax deductions and full input tax credits in regard to these gifts/benefits.

In-house Benefits
An employer can also gift employees with $1,000 worth of "in-house benefits" throughout the year. These benefits are goods or supplies that the employer sells to third parties in the ordinary course of its business. For example, a clothing manufacturer or retailer could give up to $1,000 worth of clothes to an employee tax free. The cost would be deductible to the employer and input credits fully claimable.

Relocation Costs
A number of costs in relation to relocating new employees may also be exempt from FBT. These include the use of a relocation consultant, removal and storage of household effects and expenses that are incidental to the sale or purchase of a home by the employee.

For more information please contact your accountant or Chris Fusca from JOYCE|DICKSON Chartered Accountants on 6162 2600 or email chris@joycedickson.com.au
 

ACE Insurance Limited

When travelling for business, travel insurance is often the last thing we think of, but perhaps it should be one of the first.  Many companies will purchase insurance on a per trip basis, but this can be expensive, time-consuming and may not be provide the best range of cover. 

If a person falls sick or is injured whilst overseas, they, or their employer, could be liable for literally thousands of dollars if no cover is in place.  Many countries may not have suitable facilities, giving rise to evacuation costs as well. 

Business travellers can also carry expensive equipment with them such as laptops and mobile phones, not to mention other personal baggage items.  If an airline loses or damages your property, will the airline cover all of your costs?

Fortunately, ACE Insurance Limited can provide your business with tailored travel cover.  Overseas medical expenses, repatriation, baggage and much more can be covered by ACE’s standard business travel policy.  In addition, all persons covered under ACE’s business travel policies are eligible to use the emergency assistance services of ACE Assistance, based in Australia, whilst on a journey. 

With an ACE business travel policy, should anything happen whilst you or your employees are away, you have reliable cover in place.

ACE Insurance Limited ABN 23 001 624 020 AFSL No. 239687 (ACE) insures the ACE Business Travel Insurance Policy Wording and Product Disclosure Statement (PDS).  ACE provides general advice only and does not consider your objectives, financial situation or needs.  To decide if the product is right for you, please read the PDS, which is available by contacting your broker, Hamilton Brokers Pty Limited on (02) 6124-1200.

 

Wages Changes Overview

On the 11th of December there was some significant changes to the ACT Workers Compensation Act 1951. Particularly around some of the requirements on 6 month and 12 month declarations. Please refer to the changes detailed below and for a complete review of all changes refer to www.ors.act.gov.au

Sections 155(2), 155(3), 156, 157, 158, 159: Information for insurers on application for issue or renewal of policies

Employers no longer have to provide a statutory declaration or a certificate from a recognised auditor in connection with the provision of wage related information to insurers. Instead, employers can simply provide a statement of wages from an appropriately authorised officer of the business.
What this means for you – This will remove unnecessary administrative costs, and bring the ACT into line with other Australian jurisdictions.

Section 162, 162A, 162B: False Information Causing Lower Premium
It is a criminal offence if employers knowingly provide false or misleading information to insurers for the purposes of section 155 - 159. Employers can be fined up to $55,000 and/or 12 months imprisonment. Employers may also be prevented from operating their business.

What this means for you – Employers must provide insurers with correct information, otherwise they will suffer harsh penalties.