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  • Better practice 4: better practice checklist

    An entity that has established effective mechanisms for communicating with stakeholders will have implemented some or all of the better practices identified in the following checklist. The list is not intended to be prescriptive, as the measures taken by individual entities to communicate with relevant stakeholders will depend on its particular operating environment.

    Entities that can answer 'Yes' to most of these questions are likely to have established effective mechanisms to communicate with stakeholders in relation to FBT administration. If most of the answers are 'No', entities should consider whether there is an opportunity to review their existing FBT communication arrangements.

    Indicators of better practice


    Has the entity included information regarding FBT and RFBAs as part of its employee induction program?


    Are employees notified of the RFBA implications of receiving fringe benefits, such as home-garaging a car, receiving a LAFHA or receiving a staff award?


    Does the employee exit form request information from employees regarding fringe benefits received by them while employed by the entity?


    Does the FBT Manager liaise with the human resources work area to make human resources staff aware of FBT issues that they should consider when making remuneration decisions and offer assistance in making such decisions?


    Is there a process whereby the FBT Manager is kept informed of decisions that may have an FBT impact (for example, the introduction of new benefit type or allowance)?


    Does the entity regularly communicate with third parties such as salary packaging providers and fleet providers?

    Has the entity documented roles and responsibilities for all these parties?


    Where applicable, has the entity sought professional advice or a private ruling from the ATO to clarify the treatment of items where there is uncertainty as to the correct FBT treatment and/or where there is a significant financial or operational impact if the FBT treatment is incorrect?


    Are there documented procedures for communicating with the ATO?


      Last modified: 23 Jul 2015QC 18627