The FBT year is upon us….
Fringe Benefits Tax (FBT) relates to benefits provided to staff outside of their wages such as cars, housing, parking or meal entertainment.
The FBT year runs from 01 April to 31 March, and the tax is paid for by the employer irrespective of whether they are a sole trader, partnership or company.
Below is a checklist to help you work out if you are providing some of the common FBT Benefits:
- Do you hold any cars or other vehicles that are available to employees for their private use, including a car garaged at the employees’ place of residence?
- Do you provide loans at reduced interest rates to employees?
- Have you paid for, or reimbursed, an employee’s non-business expense?
- Do you provide a house or other accommodation to your employees?
- Do you provide entertainment including food, drink or recreation to your employees?
- Do any of your employees have a salary package arrangement in place?
Some of the above benefits may be exempt from FBT, such as specific car types (e.g. Utes and Vans) as well as minor and infrequent meal entertainment.
If you are unsure about your FBT responsibilities, please feel free to contact us.
*2021 FBT Return lodgement due date is 25 June*