University glossary

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Agent

An intermediary who is authorised by another party (known as the principal) to do something on that party's behalf (e.g. make a purchase). 

Annual Financial Statements

The Annual Financial Statements (AFS) are the complete set of official and formal Financial Statements for the University as a complete entity, as well as the Consolidated position of the University and other entities within its control, specifically ANU Enterprise Pty Ltd.

Annualised kilometres

The number of kilometres the car would have travelled if you had it for for the whole year. 

Use the following formula to calculate an annualised figure: 

A/B x C 

Where: 

A = the number of whole kilometres travelled in the period during the year when you owned or leased the car. 

B = the number of days in that period. 

C = the number of days in the FBT year (usually 365).

Arms length transaction

Where the price is determined by the interaction of willing, but unrelated buyers and sellers.

Associate of an employee

An associate of an employee includes:

  • a relative of the employee (e.g. sibling, spouse, child)
  • a person who is in partnership with that employee, and that person's spouse and children.

Associate of the employer

Entities that are associates of ANU include ANU Enterprise and other Commonwealth Government Agencies.

Australian Accounting Standards

The University's AFS are completed in accordance with Australian Accounting Standards as set down by the Australian Accounting Standards Board.

Australian Government entity

An Australian Government entity is defined as:

  • a Department of State of the Commonwealth; or
  • a Department of the Parliament; or
  • an Executive Agency, or Statutory Agency, within the meaning of the Public Service Act 1999; or
  • a Department of State of a State or Territory; or
  • an organisation is either established by the Commonwealth, a State or a Territory to carry on an enterprise or established for a public purpose by an Australian law; or
  • a local governing body established by or under a State law or Territory law.

Public Universities in Australia are generally government related entities.

Available for private use (car fringe benefit)

A vehicle is automatically considered to be available for private use if:

  • It is actually used for private purposes by the employee (home to work travel is private)
  • It is not located on ANU premises and the employee is allowed to use it for private purposes
  • It is garaged or kept at or near the employee's residence (home, hotel, temporary accommodation etc) - regardless of whether the employee has permission to use it privately.

Base value

The base value of a vehicle owned by ANU includes:

  • the purchase price of the car (including GST and luxury car tax where appropriate) originally paid for the car, including the costs of any fitted accessories not required for business use of the car.
  • dealer 'delivery' charges (including GST)
  • NOTE: Registration and stamp duty charges should be excluded from the base value.

Benefit

The term 'benefit' is broadly defined to include any right, privilege, service or facility but excludes payments of salary or wages, eligible termination payments or contributions to complying superannuation funds.

Business Activity Statement

The form that is submitted by businesses to the Australian Taxation Office reporting GST liabilities and credits.

Car

The following types of vehicles (including four-wheel drive vehicles) are cars:

  • motor cars, station wagons, panel vans and utilities (excluding panel vans and utilities designed to carry a load of one tonne or more)
  • all other goods-carrying vehicles designed to carry less than one tonne, and
  • all other passenger-carrying vehicles designed to carry fewer than nine occupants.

Client

Any person that is not an ANU employee or an associate of an ANU employee.

Connected with Australia

A supply of goods has the relevant connection with Australia if:

  • the goods are physically delivered or made available in Australia;
  • they are removed from Australia (Note: exemption is exports) where certain conditions are met;
  • they are imported into Australia, or brought from overseas and installed or assembled in Australia.

A supply of real property has the relevant connection if the real property is situated in Australia, or if the land to which the real property relates is in Australia. 'Real Property' includes, rights, interests, options, and licences over land. A supply of anything else (e.g. services, rights, advice or obligations) has the relevant connection if:

  • it is done in Australia; or
  • the University makes the supply through an enterprise that the University carries on in Australia.

Services are normally "done" in the place where they are performed, even if they are for the benefit of a recipient who is somewhere else.

Consideration

Consideration means, in effect, just about anything of value. In the straightforward example of a sale of goods for money, the consideration is simply the payment. Consideration also includes situations where you do something or refrain from doing something e.g. In-kind arrangements. Any of these things are treated as a consideration for a supply if they are:

  • connected to the supply;
  • made in response to the supply; or
  • made to induce the supply.

DEEWR

Department of Education, Employment and Workplace Relations to whom the University reports, and from whom significant funding is received.

DOFD

Department of Finance & Deregulation, the Federal Government Department who governs the Accounting Principles and Procedures with which the University must comply in addition to other legislative requirements.

Eligible Seminar

Key requirements for eligible seminar:

  1. goes for at least 4 hours (excluding breaks) on any one day; AND
  2. a) is a conference, convention, lecture, speech, training session, educational course, or meeting not discussing normal administrative ANU business matters and is held at any venue (can be held on or off ANU premises); ORb) Is a gathering discussing administrative matters (e.g. planning day) or an employee training session AND the meeting is held off ANU premises.

For a multi day conference, each day needs to be assessed on a case by case basis to determine whether the conference schedule for that day meets the requirements of an eligible seminar. A meal is only FBT free under the eligible seminar rules where it is incidental to the seminar, and not a separate event in its own right.

Employee

Usually an individual who is paid salary and wages through the University's payroll system.  Refer to employee v. contractor checklist   to determine whether an individual should be treated as an employee.

Employee contribution

An amount paid directly to the University towards the cost of the benefit.  Employee contributions for expense payments should be receipted to account 9295, or 9295T for travel related contributions, 9295C for cars.

Employee contribution (car fringe benefit)

An employee contribution may be an amount paid:

  • directly to the University by the employee for use of the car (all employee contribtions for cars should be receipted to account 9595C) from the employee's  after-tax income, or
  • directly to a supplier (e.g. petrol station) by the employee for some of the car's operating costs (for example, fuel). However, the employee must provide you with documentary evidence of the expenditure (for example, receipts or invoices). In the case of petrol and oil costs, a declaration from the employee is sufficient for this purpose and receipts are not required.

Enterprise

The most common example of an enterprise is a business, but it is not limited to that. An enterprise is an activity, or a series of activities, done:

  • in the form of a business;
  • in the form of an adventure or concern in the nature of trade;
  • on a regular or continuous basis, in the form of a lease, licence or other grant of an interest in property;
  • the trustee of a fund that is covered by, or by an authority or institution that is covered by, Subdivision 30-B of the ITAA 1997 and to which deductible gifts can be made;
  • by a charitable institution or by a trustee of a charitable fund;
  • by a religious institution; or
  • by the Commonwealth, a State or a Territory, or by a body corporate, or corporation sole, established for a public purpose by or under a law of the Commonwealth, a State or a Territory.

FBT Act

Fringe Benefits Tax Assessment Act 1986

GST Law/legislation

A New Tax System (Goods and Services Tax) Act 1999.

GST-free supply

or further information please refer to... GST-free supplies

In house benefit

A benefit is an in-house if ANU provides the benefit and it is identical or similar to rights, services, facilities, etc that ANU provides to the public in the ordinary course of its business.

In respect of the employment of the employee

A good question to ask to assist in determining whether a benefit has been provided in respect of the employment of an employee is "would the ANU have provided the same benefit in similar circumstances if the recipient of the benefit was not an ANU employee?"

Input tax credit

A GST credit (refund) a business can claim back from the Australian Taxation Office for purchases it makes in the course of its business.

Live away from home

An employee will be considered to be "living away from home" for FBT purposes when:

  • As a result of the employee being required to work at an alternate location the employee has to live away from their usual place of residence
  • The requirement to work at the alternate location is for a set time period (i.e. It is not a permanent arrangement/on-going appointment);
  • The employee intends to return to the location of their usual place of residence once the work commitment has ceased.

Operating costs

The actual operating costs (including GST) are those expenses incurred for:

  • repairs, but not crash repair expenses met by an insurance company or another person legally responsible for the damage to the car
  • maintenance (e.g. service costs, new tyres etc)
  • registration and insurance

Deemed interest and depreciation is calculated centrally by Finance and Business Services for all cars owned by ANU.

Otherwise deductible declarations

Otherwise Deductible Declarations:

Otherwise Deductible Rule

The application of the otherwise deductible rule means that if ANU pays for an expense that would have been deductible to the employee, had they incurred it, then ANU is entitled to a corresponding "FBT deduction".  The otherwise deductible rule does not apply to benefits in excess of $300 where the employee would not have been able to claim a once only tax deduction (i.e. they would have had to depreciate the item over several years).

For the otherwise deductible rule to apply the following two condition must be satisfied:

  • The employee must provide a declaration setting out details of the expense and the extent to which it would have been tax deductible to them. AND
  • ANU must be provided with receipts and invoices regarding the expenditure.

Payment Summary

Group Certificate

Principal

A person/entity that authorises an agent to act on their behalf is called the principal.

Private use percentage (car fringe benefit)

Private use % = 100% - (A/B) Where: A= number of business km traveled during the FBT year per thelogbook B= Total number of km traveled during the FBT year

Real Property

The definition of real property includes any interest, licence, call or right over land.

Registered or required to be registered

An entity must register for GST if:

  • it is carrying on an enterprise, and
  • its annual turnover is at or above the registration turnover threshold of $75,000 (or $150,000 for a non-profit organisation).

Remote area

A location that is:

  • less than 40 kilometres from an eligible urban area with a census population of 14,000 to less than 130,000, or
  • less than 100 kilometres from an eligible urban area with a census population of 130,000 or more.

If the accommodation is in zone A or B (for income tax purposes), to be remote it must be located:

  • at least 40 kilometres from an eligible urban area with a census population of 28,000 to less than 130,000, or
  • at least 100 kilometres from an eligible urban area with a census population of 130,000 or more.

Population figures are based on the 1981 Census. PS LA 2000/6 lists towns that are considered to be remote.

Reportable Fringe Benefit Amount.

Refer to reportable fringe benefits for further info.

Special conditions for GST-free exports where possession by purchaser is taken in Australia

It may happen that an overseas purchaser of goods buys them from ANU, takes delivery in Australia and later exports the goods. ANU treats this as an export of the goods, if the following conditions are met:

  • The overseas purchaser is not GST-registered, or required to be registered;
  • The goods must be "entered for export" with customs;
  • The overseas purchaser must not alter the goods in any way, except to prepare them for export; and
  • ANU has documentary evidence that the purchaser actually exported the goods.

If these conditions are not met, GST will be payable. Refer to GST and Exports for further information.

Statutory interest rate

The interest rate used to calculate the FBT on loan fringe benefits. The rate is updated each year. The rate for the year beginning 1 April 2015 is 5.65%.

Statutory percentage

Existing Commitment entered into prior to 7:39pm AEST on 10 May 2011

Annualised kilometres traveled Statutory percentage
Less than 15,000 26%
15,000 to 24,999 20%
25,000 to 40,000 11%
Over 40,000 7%

New Commitment entered into from 10 May 2011 to 31 March 2014

Annualised kilometres traveled Statutory percentage (from 1 April 2014)
Less than 15,000 20%
15,000 to 24,999 20%
25,000 to 40,000 20%
Over 40,000 20%

Supply

A supply is any form of supply whatsoever, including:

  • A supply of goods;
  • A supply of services;
  • A provision of advice or information;
  • A grant, assignment or surrender of real property (ie. right or interest over land);
  • A creation, grant, transfer, assignment or surrender any right;
  • financial supply
  • A entry into or release from any obligation

Taxable supply

For further information please refer to... Taxable supplies

Unit of accommodation

A unit of accommodation includes:

  • a house, flat or home unit
  • accommodation in a house, flat or home unit
  • accommodation in a hotel, motel, guesthouse, bunkhouse or other living quarters
  • a caravan or mobile home, or
  • accommodation in a ship or other floating structure.