Do you receive Centrelink benefits and also receive Fringe Benefits from your employer?
If you have answered yes to this question, are you aware of the changes to legislation which came into effect as of the 1st of January 2017?
The change could affect your taxable income and therefore have implications on the Centrelink benefits and/or amounts of Centrelink benefits you are entitled to.
From the 1st of January 2017, the new legislation meant that 100% of the fringe benefits will be added to an individual's adjusted taxable income (ATI), prior to the change only 51% of the fringe benefit was added to the ATI.
What does this mean? The changes meant that ALL reportable fringe benefits now count as income for clients who receive family assistance and youth income support payments, including family tax benefit part A and part B, childcare benefit, youth allowance, ABSTUDY and parental leave pay.
Because your ATI may go up your entitlement to benefits and tax offsets may decrease or be lost altogether.
What should you do? If you are concerned that this new legislation will affect you, you should contact our office for some advice.