Generally, motor vehicles provided to employees or their associates are subject to FBT if they are used or are available for private use.

Each year the ATO publishes a comprehensive but not exhaustive list of motor vehicles which may be eligible for an exemption from FBT.

The ATO stresses that vehicles that are included in the listing are not automatically exempt from FBT, but rather depend on whether the eligibility criteria for the exemption are met.

Beware of Identity Crime

Your Tax File Number (TFN) is a key part of your identity while you are in Australia.

It is an important form of identification when you start a new job, open bank accounts and apply for government benefits. Keep it secure.

Protect your identity by protecting all your personal details, including your TFN. Keep your passwords and TFN safe and never record or store them where they could be stolen, such as in your purse or wallet.

Employees who salary sacrificed into super in the lead up to 30 June 2009 to take advantage of the $100,000 and $50,000 concessional contribution caps which were halved from 1 July 2009 may unwittingly be hit with excess concessional contributions tax in the current financial year. 

UNIVERSITY undergraduates will be able to claim educational expenses as a tax deduction after a former student had a landmark win against the Tax Office in the Federal Court recently.

A former Australian Catholic University student, was successful in her bid to claim $920 as self-education expenses after fighting the Australian Tax Office through a number of jurisdictions over the past three years.

In the 2009 Budget, the government announced changes to the non-commercial losses rules. These changes will further restrict the deductibility of business losses incurred in relation to non-profitable business activities. The measure will ensure excess deductions from unprofitable business activities cannot be used to reduce salary, wage and other income of high income earners.

With one in five taxpayers owning a rental property, the Tax Office has issued a timely reminder that, depending on your circumstances, you may be able to claim the following expenses this tax season:

• Capital works;
• Repairs and improvements;
• Interest, legal costs and other expenses incurred when purchasing the property;
• Interest paid on the loan;
• Borrowing expenses such as:

 - mortgage broker and loan establishment fees;

 -stamp duty charged on the mortgage;