Taxation at the University

Contacts

For all taxation enquiries:
Leah Dincog
Senior Operations Accountant
Phone: 02 4570 1217 (ext: 1217)
Email: l.dincog@westernsydney.edu.au
Office of Finance, Hawkesbury Campus, Bldg M16

Fringe Benefits Tax (FBT)

Fringe Benefits Tax (FBT) is paid by the University on benefits it provides to employees. It is charged to the centre/project that provided those benefits.

The most common types of Fringe Benefits provided by the University are car fringe benefits, meal entertainment fringe benefits and expenses fringe benefits.

Car Fringe Benefit

FBT is payable on all instances where vehicles are garaged off campus.

Where a car has been salary packaged by a staff member, as a means of recovery, FBT is charged as a cost to the package.

Meal Entertainment

The University is liable for FBT on food and drinks provided to employees during social gatherings, business/working lunches, networking meetings and certain seminars.

Invoice/credit card charges relating to food and drinks need to be split between FBT eligible and FBT non-eligible expenses and coded accordingly into separate general ledger accounts.

Expense Payment Benefit

Where the University pays an expense incurred by an employee, and the expense is not otherwise tax deductible to the employee (i.e. the expense does not fully or partially relate to work related activity), an expense payment fringe benefit arises.

Where the expense is otherwise tax deductible to the employee, the employee is required to complete a declaration to that effect.

Returns and Statutory Compliance

Employee payment summaries (group certificates) will report benefits in excess of $2000. Finance prepare and lodge the University and related entities FBT returns.

Stamp Duty

Stamp Duty is a State tax imposed [Duties Act 1997 (NSW)] either at a fixed rate or at 'ad valorem' rate on the value of the transaction involved.

The University has specific exemption from:

• Duty on insurance taken out by the University or on its behalf, not being a policy of life insurance under the Duties Act 1997.
• Duty in respect of an application to register a motor vehicle in NSW, under the Duties Act 1997.
• Duty in respect of anything done by the University for the purposes of the borrowing of money or the investment of funds under the Western Sydney University Act.

The University has a blanket exemption under S275 from:

• Duty on a transfer or agreement for sale or transfer, or lease, of dutiable property to, or declarations of trust over dutiable property held or to be held on trust for, or mortgages given by or on behalf, of the University.

Payroll Tax on Engagement of Contractors

The University regularly engages people and companies to provide a range of services on a temporary basis. In some circumstances, it may not be clear whether the arrangement is one of employer/employee or whether the person(s) may be engaged as an independent contractor. To ensure that workers are properly assessed as either an employee or an independent contractor for payroll tax purposes, each School or Business Unit that engages an individual worker is required to complete an Independent Contractor Evaluation Checklist and Declaration  (DOC, 43.5 KB) (opens in a new window) and if applicable, a Subcontractor's Statement (PDF, 256.34 KB) (opens in a new window).

For information, please see the Contractors Information on the NSW Office of State Revenue website.