Blog

The ATO Grinch & Fringe Benefits

Comments Off on The ATO Grinch & Fringe Benefits

We’re all getting excited about our Office Christmas party – but here’s a quick reminder about the tax implications from the ATO Grinch!

If your business holds a Christmas party:

  • on a working day, on your business premises, and only for your current employees, you don’t pay fringe benefits tax (FBT) for the food and drink
  • off your business premises, or the party includes associates of employees (such as their partners), you don’t pay FBT if the party is a minor benefit – that is, the cost for each person is less than $300 and it would be considered unreasonable to treat it as a fringe benefit
  • that includes clients, you don’t pay FBT for the costs relating to the clients.
fancy calligraphy saying merry grinch-mas

If you give your employees a Christmas gift, you don’t pay FBT if the value of the gift is less than $300 per person and it would be considered unreasonable to treat it as a fringe benefit.

If the Christmas party is not subject to FBT, you can’t claim income tax deductions (or GST) for the cost of the party.

https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/entertainment-related-fringe-benefits/how-to-work-out-fbt-on-entertainment

Quick Guide to FBT (Fringe Benefits Tax)

Fringe Benefits

A fringe benefit is a payment made to an employee but in a different form to salary or wages. Benefits made to volunteers or contractors are NOT fringe benefits. A fringe benefit is provided “in respect of employment”. It can also be a benefit given to an associate of the employee. So, for example if an employer pays the gym fees of an employee’s spouse, this is considered a fringe benefit provided to an associate of the employee.

Examples of fringe benefits include:

  • allowing an employee to use a work car for private purposes
  • car parking
  • paying an employee’s gym membership
  • providing entertainment by way of free tickets to concerts
  • reimbursing an expense incurred by an employee, such as school fees
  • giving an employee a discounted loan

Some work-related items (mainly used for work purposes) are exempt benefits. The exact exemption rules vary for small businesses:

  • Portable electronic devices
  • Software, protective clothing, tools of trade

‘Minor benefits’ are also exempt

  • When it’s both less than $300
  • And ‘unreasonable for it to be treated as a fringe benefit’

Fringe Benefits Tax – FBT

FBT is the amount of tax that would have been paid by the employee if they had paid for the benefit out of their own wages, at the top marginal tax rate including the medicare levy (47%) – eg. To buy a gym membership costing $1,100 including GST, the wages required would be $2,075: – $975 tax and $1,100 membership.

Instead of paying the employee extra salary of $2,075, the employer pays the gym membership of $1,100, claims $100 GST credits, and pays the tax required directly to the ATO as FBT. The employer can claim an income tax deduction for both the cost of the gym membership, and the cost of the FBT.
The employee then does not pay income tax on the fringe benefit.

The FBT year is from 1st April to 31st March, and a FBT return must be lodged each year.

For more information visit https://smallbusiness.taxsuperandyou.gov.au/expense-payments-fringe-benefits-tax and https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax

Author:
Wendy Nathan
Kookaburra Veterinary Employment

This information includes the views and opinions of Kookaburra Veterinary Employment and is of a general nature only. Factual information is believed to be correct at the time of writing, however, should not be relied upon and any person should confirm details with the relevant authorities and through their own research prior to acting on any of the suggestions in this article.

12/12/2024 |

Employing Overseas Vets & Vet Nurses – September 2023 Update

Comments Off on Employing Overseas Vets & Vet Nurses – September 2023 Update

Visa picture

Information below has been sourced from the Department of Home Affairs website www.homeaffairs.gov.au in September 2023.

Skilled Occupation List

The Priority Migration Skilled Occupation List (PMSOL) was temporary and existed while Australia recovered from the COVID pandemic.

It has now been replaced by the Skilled Occupation List. This combined list comprises occupations on

  • the Medium and Long-term Strategic Skills List (MLTSSL),
  • the Short-term Skilled Occupation List (STSOL),
  • the Regional Occupation List (ROL)
  • or the Regional Sponsored Migration Scheme (RSMS) ROL List

The following visas, which may be of interest to vets and vet nurses, are available to individuals qualified to work in the eligible skilled occupations. Please see www.homeaffairs.gov.au for details of additional visas.

  • Temporary Skill Shortage (TSS) visa (subclass 482)​
    • See extra information below
  • Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)
    • Regional areas – all areas of Australia except for Sydney, Melbourne and Brisbane
    • Length of stay – up to 5 years
    • Under 45 years of age (some exemptions exist)
    • 3 years’ experience
  • Employer Nomination Scheme (ENS) visa (subclass 186)​
    • This is a permanent visa
  • Regional Sponsored Migration Scheme (RSMS) visa (subclass 187)
    • This is a permanent visa, for workers transitioning from a 457 or 482 visa & continuing to work for their sponsoring employer

Employers – Standard Business Sponsor

Before an employer is able to nominate a vet to sponsor in the TSS 482 or Regional 494 visa categories, they must be, or have applied to become a standard business sponsor. Once approved, this status lasts for 5 years.  ( Further eligibility requirements exist in order to be an Accredited sponsor, including NOT being a sole trader or partnership ). As of 6th September 2023 this is the direct link for information on the procedure:

https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/becoming-a-sponsor/standard-business-sponsor#Overview

Temporary Skill Shortage visa (subclass 482)

The Temporary Skill Shortage (TSS) visa (subclass 482) replaced the old 457 visa in March 2018.

TSS visa holders can work in Australia in their nominated occupation for their approved sponsor under one of three streams:

Short-term stream

  • Length of stay – up to 2 years
  • Vet Nurses are currently on the Short term Skilled Occupation list (STSOL)
  • Requirements for eligibility include English language requirements, skills assessments (by VETASSESS for VNs), nomination by an employer, health and character requirements.
  • Must have worked in the nominated occupation, or a related field, for at least two years
  • There is no age requirement
  • The current link for skills assessment for migration for Vet Nurses is https://www.vetassess.com.au/skills-assessment-for-migration/professional-occupations/application-process

Medium-term stream

  • Length of stay – up to 4 years
  • Vets are currently on the Medium term Skilled Occupation list (MLTSSL)
  • Requirements for eligibility include English language requirements, skills assessments (by AVBC for Vets), nomination by an employer, health and character requirements.
  • Must have worked in the nominated occupation, or a related field, for at least two years
  • There is no age requirement
  • The current link for skills assessment for migration is https://avbc.asn.au/for-veterinarians/skills-assessment-for-migration/ You can only apply for a skills assessment once you hold full registration with an Australian Veterinary Registration Board.

Labour Agreement stream

  • This stream is available if your employer wishes to sponsor you (as an overseas worker) and has entered into a labour agreement with the Department

Application for the Temporary Skill Shortage (TSS) visa (subclass 482) involves a three-step process:

Step 1: a sponsorship application by the employer

Step 2: a nomination application for a skilled position by the employer

Step 3: a visa application by the proposed employee

Labour Market Testing requirement –  Subclass 482 (TSS) and Subclass 494 (Regional)

For a nomination to be approved, the Department must be satisfied that a suitable qualified and experienced Australian worker is not available to fill the nominated position.

For most nominations, advertising must be done within the 4 months immediately before lodging a nomination application. Advertising must meet all of the below (further requirements may apply – please see www.homeaffairs.gov.au for up to date information – the direct link is currently https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/nominating-a-position/labour-market-testing  as of September 2023):

  • the nominated position has been advertised in Australia
  • the advertisement was in English and included the following information:
    • the title, or a description, of the position
    • the name of the approved sponsor or the name of the recruitment agency being used by the sponsor and
    • the annual earnings for the position ( unless the annual earnings will be greater than $96,400 ) It is acceptable to publish a salary range.
  • at least two advertisements were published:
    • on a national recruitment website. Note: a general classifieds website is not an acceptable method
    • in national print media
    • on national radio or
    • if the sponsor is accredited – on the business’ website.
    • advertisements, including on websites, are expected to have run for at least 4 weeks

Kookaburra Veterinary Employment can supply a statement on request with information regarding your job advert, the period that it was listed, and the total cost of advertising.

Additional Requirements for nominations lodged on or after 1 October 2020

In September 2020, the Australian Government introduced new labour market testing measures for employer sponsored applications. 

In addition to the 2 advertisements mentioned above:

  • the nominated position must be advertised on the Government’s jobactive website ( https://jobactive.gov.au/ )
  • the jobactive advertisement must have included all of the information required to be included in the other 2 advertisements mentioned above
  • jobactive advertisements are expected to have run for at least 4 weeks
  • applications or expressions of interest for the advertised position must have been accepted for at least 4 weeks

Note: advertising may have been undertaken by a third party if authorised to do so by the sponsor (for example, an associated entity or a contracted party, such as a recruitment agency) – there is no requirement that the sponsor placed the advertisement themselves

Evidence of a total of 3 advertisements, including an advertisement published on the Government’s jobactive website, must be provided at the time the nomination is lodged.

Meeting TSMIT requirements

Both the Annual Market Salary Rate (AMSR) for the nominated occupation and the guaranteed annual earnings that will be paid to the nominated overseas worker, excluding any non-monetary benefits (for example, accommodation or car provided to them as part of their salary package), must not be less than the TSMIT (Temporary Skilled Migration Income Threshold).

TSMIT is currently set as AUD$70,000 for applications lodged on and after 1 July 2023, as specified in the relevant legislative instrument. For applications lodged before 1 July 2023, it was AUD$53,900.

The requirements and process for visa application can be very complicated and there are more conditions than are listed in this article – you can find more information at www.homeaffairs.gov.au

Migration Agents

If you are considering engaging a migration agent, you should ensure they are registered with the Office of the Migration Agents Registration Authority (OMARA). This registration demonstrates they have sufficient expertise and are a fit and proper person to provide immigration assistance. The OMARA registrar can be found at portal.mara.gov.au/search-the-register-of-migration-agents/. It is recommended that you look up a migration agent to ensure they are on the registrar before engaging their services.

Author:

Wendy Nathan
Kookaburra Veterinary Employment

This information includes the views and opinions of Kookaburra Veterinary Employment and is of a general nature only. Factual information is believed to be correct at the time of writing, however, should not be relied upon and any person should confirm details with the relevant authorities and through their own research prior to acting on any of the suggestions in this article.

06/09/2023 |

VetFamily – More Time. More Savings. More Support. For Your Practice.

Comments Off on VetFamily – More Time. More Savings. More Support. For Your Practice.

Running an independent veterinary practice comes with unique challenges—from rising costs to limited time for growth. VetFamily membership helps you overcome these pressures by giving you access to exclusive supplier agreements, rebates, and cost-saving opportunities on products and services you already use.

Beyond financial benefits, you’ll gain the support of dedicated practice advisors, practical resources, and a strong network of like-minded peers who share your values. With VetFamily, you can redirect both time and money back into your clinic, focusing on patient care, your team, and building a thriving business.

Our membership is designed to protect your independence while strengthening your practice for long-term success.

Do you spend too much time on non-value adding activities?

Get in touch or schedule a 15-minute call with our friendly team.

06/11/2025 |

2019 Salary Survey Results – Part 1

1

Kookaburra_Logo_stackedThank you to all the vets who participated in this year’s Salary Survey. There was a total of 595 respondents, compared to 336 in 2017.

Results have been published in 4 separate reports, of which this is the first:

  1. Pay Rates compared by practice type, location, experience level, numbers of years graduated, corporate vs non-corporate, and by job classification (full time, part time, locums, and contractors)
  2. Gender Differences
  3. Out of Hours and Extras
  4. Happiness and Future Plans

Minimum pay rates and conditions are set in the Animal Care and Veterinary Services Award 2010, which you can find using Google, or at https://www.fwc.gov.au/documents/documents/modern_awards/award/ma000118/default.htm

Methodology

The pool of vets was contacted by direct emailing the main clinic email for all the clinics in Australia in the Kookaburra database (1,909 clinics), direct emailing all the vets currently registered as job seekers with Kookaburra ( approximately 143), and by including advertising banners with a direct link to the survey on the Australian pages of the websites www.kookaburravets.com and www.vetsuppliersdirectory.com.au , and on all the correspondence sent out from Kookaburra during the survey period. We also asked the HR departments of the major Australian corporates to assist by distributing the link to the survey to their veterinary associates. In addition, it was posted on Facebook on two of the Australian Veterinarian network closed group pages (briefly, as it was considered to be ‘advertising’ and was deleted by admin).

The survey was open from 15th July to 20th August 2019. It was hosted on Survey Monkey and analysis of results was carried out in Survey Monkey and using Microsoft Excel Office 365. The survey was anonymous, and no IP data was collected. There was a total of 16 questions.

For a Key to the box and whisker plots used, please see the Appendix at the bottom of this document

To download this Report as a printable pdf please click here
https://www.vetsuppliersdirectory.com.au/wp-content/uploads/2019/09/Survey-Results-2019-Part-1.pdf

Pay Rate All Practice Types

Pay vs Experience Level with scale

We wondered whether salary would be better correlated with another gauge of competence besides the numbers of years since graduation, so we asked respondents to self-assess their Technical Experience level according to the following scale, increasing in competence from 1 to 9, and then also including an option for non-clinical roles:

  1. Has broad theoretical knowledge, requires a more experienced vet to be available for discussion for consults/medicine, and guidance for surgery most of the time
  2. Confident for consults, requires guidance for surgery/procedures most of the time
  3. Confident for consults and routine surgery and seeks guidance for new procedures
  4. Confident for consults and routine surgery, able to work sole charge regularly
  5. Confident for consults, surgery, sole charge, and after hours emergencies
  6. Has or is working towards post graduate qualification in medicine, or other non-surgical qualification
  7. Has or is working towards post graduate qualification in surgery or ECC
  8. Has additional qualifications, supervises and teaches less experienced vets
  9. Has or is working towards specialist qualification
  1. Experienced in non-clinical / Industry roles

 

Years Graduated vs Experience Level with heading

Pay vs Experience Level

General Practice types vs years of experience with scale

Hourly Pay Histogram ft pt

Annualised Pay Histogram FT PT

Actual Pay Histogram FT PT

Hours Worked

Pay vs Hours worked with linear trend-line

Pay vs State2

Pay vs Location Category2

* Respondents gave the postcode for their current job. This was categorised according to the Australian Tax Office region and postcode definitions for the 2016-2017 tax year.

Locums

For data on Locums, we combined the data for vets classified as Casual with Self Employed Contractors. There was a total of 98 respondents in these 2 categories.

Locum Rates - vs Experience level

  1. Has broad theoretical knowledge, requires a more experienced vet to be available for discussion for consults/medicine, and guidance for surgery most of the time
  2. Confident for consults, requires guidance for surgery/procedures most of the time
  3. Confident for consults and routine surgery and seeks guidance for new procedures
  4. Confident for consults and routine surgery, able to work sole charge regularly
  5. Confident for consults, surgery, sole charge, and after hours emergencies
  6. Has or is working towards post graduate qualification in medicine, or other non-surgical qualification
  7. Has or is working towards post graduate qualification in surgery or ECC
  8. Has additional qualifications, supervises and teaches less experienced vets
  9. Has or is working towards specialist qualification
  10. Experienced in non-clinical / Industry roles

 

Locum Rates - Casual vs Contractor

Locum Rates - Corporate vs Non-Corporate1

 

Corporate Practices

Corporate vs non-corporate - small animal vs mixed practice1

Corporate Happiness

Corporate_practice_vs_year_graduated

Appendix

Key to Box Whisker plots

© Copyright Kookaburra Veterinary Employment

2nd September 2019

Logo

04/09/2019 |
© Vet Suppliers Directory 2019. Vantage Theme – Powered by WordPress.
Skip to toolbar