Salary packaging bus fares

[ozbob]

Hey PM @TurnbullMalcolm absurd tax ruling. Can you sort please? Tks.
> https://t.co/UrJxJKdrX0#qldpol #auspol #nswpol #springst

— Robert Dow (@Robert_Dow) July 18, 2016

[ozbob]

Sent to all outlets 19th July 2016

11th March 2016  resent 19th July 2016

Salary packaging bus fares - needs to include all modes

Greetings,

RAIL - Back on Track welcomes the return of salary packaging to public transport. The previous limitation of that benefit to private cars represents an indefensible financial penalty to anyone who doesn't drive to work.

However, we have one major concern - it seems this will only be available on buses [1, 2]. The strength of all transport networks lies in their integration. In the case of the TransLink network, the lynchpin of integration is the fare system.

A great many people catch trains, trams or ferries in their commute. Why on earth can't they also benefit from salary packaging?

We look forward to a future ruling from the Australian Tax Office that salary packaging will be permitted across all modes of travel.

Best wishes,
Robert

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

References:

1. http://www.remserv.com.au/salary-packaging/what-can-i-salary-package/bus-travel-benefit
2. http://www.brisbanetimes.com.au/queensland/eligible-commuters-to-enjoy-taxfree-bus-travel-under-new-scheme-20160310-gng1bb.html

Sent to all outlets:

19th July 2016

Bus Travel Benefit Smart Card

Greetings,

RAIL Back on Track welcomes the Australian Taxation Office ruling that bus commutes can be included in salary packaging arrangements. It has been a long-standing perk for car drivers so we welcome the levelling of the playing field here, even if for buses only at present.

However, there is still more work to be done. The Australian Tax Office ruling appears to discriminate between public transport modes. Why does it matter whether one gets to work on a vehicle that has rubber tyres, versus a vehicle with steel wheels or perhaps a propeller?

We welcome Transport Minister Hinchliffe's calls to extend the arrangements to all of modes of public transport. We support the Queensland Government's attempts to get Federal Government support to broaden the tax ruling to include rail, ferries and trams particularly.  It is absurd and discriminatory to not do that.

Nevertheless, this ruling, together with the Queensland Government's excellent work on much needed and long awaited whole-of-system SEQ fare reforms will bring down the cost of public transport for all workers who use public transport.

The Queensland Government must be congratulated for taking decisive action to fix South East Queensland's diabolical fare system, which was the perverse result of years of petty and crass politics in Parliament.

For those who are currently out of work, we reaffirm our support for extending concessions to unemployed and health care card holders. Queensland is the only state that does not extend concessions to this group.

Best wishes,
Robert

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org


Reference:

Government has had tax ruling, which could lower bus travel costs, for six years
http://www.brisbanetimes.com.au/queensland/government-has-had-tax-ruling-which-could-lower-bus-travel-costs-for-six-years-20160718-gq8fwp.html

[ozbob]

South East commuters set to be the first in the country to enjoy tax-free travel. https://t.co/n1EMXHFUTp #7News https://t.co/9WBie2mPNG

— 7 News Queensland (@7NewsQueensland) July 19, 2016

[ozbob]

Brisbanetimes --> Thousands of commuters miss out on huge public transport savings

A tax ruling which could have saved thousands of bus commuters hundreds of dollars a year in public transport costs was left unused by the government for so long, it has expired.

The government achieved a tax ruling, which would have allowed public servants on the TransLink network to salary sacrifice their bus travel to and from work, in 2010.

It became applicable from April, 2011, but expired in March this year, without ever having been used, despite other networks including Victoria's Myki's commuter club, allowing for salary sacrificed travel for eligible commuters as early as 2013.

Queensland has not been able to find a "technical solution" to offer the same service, with the government now having to re-apply for the right to do so, when it manages to roll out its own cards.

It has meant private salary packaging providers, such as RemServ, which won its own class ruling from the Australian Tax Office earlier this year, is still waiting for the go-ahead from TransLink.

Transport Minister Stirling Hinchliffe said he has instructed the Transport Department to "immediately reapply for the tax ruling" and was working on a solution.

"While there was a ruling received in 2010, the major roadblock to implementing the benefit was the lack of a technical solution to allow providers to pay public transport costs on behalf of their client using pre-tax funds," he said.

"Now TransLink has developed the technical solution, the Bus Travel Benefit Card, it is timely for the department to reapply.

"Private providers also have this ruling currently will means when the Bus Travel Benefit Card is launched later this year, eligible commuters will be able to apply for the benefit with their salary sacrificing company."

Mr Hinchliffe said he would also lobby the Federal Government to change the ruling to ensure other modes of public transport outside buses could be included.

"...The Palaszczuk Government supports this benefit to encourage more employees to choose public transport, and the minister will continue to lobby the Australian Government to extend tax concessions for all public transport users," he said.

"Salary sacrificing is something thousands of Australians are already benefiting from and it is about time the Federal Government extended this benefit to employees who travel on rail, tram or ferries."

RemServ had hoped to offer salary sacrificing for its clients, which include employees of up to 300 companies by earlier this month.

Mr Hinchliffe said he had been assured the card allowing the tax free travel, which could potentially save commuters up to $1000 a year depending on how far they are travelling within the south-east Queensland network, would be available by the year's end.

[Derwan]

I have no doubt that the "technical solution" could've been ready a lot sooner - but was put on hold during the Newman years as he had declared war on public servants.

I wonder how long the new ruling will take - and whether it will be in place by the time the private sector gets access to the Bus Travel Benefit Card.  (There will be lots of screaming public servants if it isn't!)

[ozbob]

Brisbanetimes --> Brisbane City Council staff to salary sacrifice commutes

Brisbane City Council employees will be allowed to salary sacrifice the cost of bus travel to and from work.

Under a new agreement with the council's salary packaging provider, employees can apply for a TransLink goBus travel benefit card from Tuesday.

Lord Mayor Graham Quirk said employees could use the card to prepay their bus travel to and from work, saving hundreds of dollars in their take home pay.

"Rather than using post-tax income, council staff will be able to use pre-tax dollars to pay for their bus travel to and from work, to reduce their taxable income," Cr Quirk said.

"Council employees are based at over 120 locations and the great majority of council's 7550 full time staff use public transport, with around two-thirds of all trips made on buses."

Employees on an annual gross salary of $70,000, commuting to and from work daily across four zones, would be eligible for a total annual benefit of $1480.

Cr Quirk said the announcement was a great incentive for more people to start commuting on Brisbane's buses.

The new agreement follows a Class Ruling from the Australian Taxation Office and Brisbane City Council is the first major employer to implement the initiative.

In July, it was reported that the ruling for RemServ, once given the go-ahead from TransLink would mean employees from the 300 or so organisations signed up to RemServ could salary sacrifice their work bus commute.

The Queensland government also had one for its own employers but was yet to put it into action.

RemServ group executive Queensland Kylie Pashen said it was proud to partner with the council to launch the bus travel benefit.

[#Metro]

I think salary sacrifice is a bit weird. People are getting cars off this mechanism apparently.

https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/In-detail/Employees/Salary-sacrifice-arrangements-for-employees/

Anyway, have the ATO revised their ruling, or do they require the vehicle to only have rubber tyres and not steel wheels to be able to claim the benefit??

[HappyTrainGuy]

I know quite a few BCC employees that live outside the BCC boundary area. I wonder if they would abuse it??...... Nah, they got utes with BCC logos on the sides

[City Designer]

Utes are exempt from FBT.

[HappyTrainGuy]

Utes are exempt from FBT.

Last time I checked they didn't own them ie company car hence me referencing the massive bcc logo on the doors.

[ozbob]

Brisbanetimes --> Queensland employees to salary sacrificing public transport 'shortly'

Salary sacrificing public transport trips on buses is edging ever closer for Queensland public servants after years of waiting.

And there's good news for commuters who work in the private sector too.

A "staggered rollout" will begin for Queensland public servants to access the benefit through both RemServ and Smartsalary salary packaging companies "shortly", a Department of Transport spokesman said.

Public servants will be able to use the scheme to pay for bus travel on the TransLink network in pre-tax dollars for journeys to and from work.

On Friday arrangements were made with TransLink to roll out the scheme to the private sector, with the product being extended to private companies.

Smartsalary recently secured a private ruling by the Australian Taxation Office (ATO) to allow it to offer salary sacrificing on bus trips on the TransLink network. ...

[City Designer]

Utes are exempt from FBT.

Last time I checked they didn't own them ie company car hence me referencing the massive bcc logo on the doors.

Correct. The "company" (Brisbane City Council) don't have to pay FBT on utes taken home by staff.

[Derwan]

Got a mention on 7 news tonight - indicating it's available to public servants.  However, apart from BCC, it's currently only available to "pilot" departments, DTMR and HPW.  The others are still waiting.  Things happen slowly in Queensland.

[wbj]

Got a mention on 7 news tonight - indicating it's available to public servants.  However, apart from BCC, it's currently only available to "pilot" departments, DTMR and HPW.  The others are still waiting.  Things happen slowly in Queensland.

I don't understand why it isn't available for train travel.

[ozbob]

Yes, during the interview I was asked about the salary packaging. My comment was that it really needs to be extended to all modes and Governments need to be working towards that aim.  Didn't make the cut ..   

With these interviews you do 5 to 10 minutes, which is condensed to 5 seconds or so if one is lucky .. 

How to cut travel costs on public transport. @LauraDymock #7News pic.twitter.com/X8Rbg1TogH

— 7 News Queensland (@7NewsQueensland) April 24, 2017

[newbris]

Got a mention on 7 news tonight - indicating it's available to public servants.  However, apart from BCC, it's currently only available to "pilot" departments, DTMR and HPW.  The others are still waiting.  Things happen slowly in Queensland.

I don't understand why it isn't available for train travel.

Or commuter bicycles like the UK.