Fringe Benefits Tax

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 1 April to 31 March and the tax is paid for by the employer irrespective of whether they are a sole trader, partnership or company.

Examples of fringe benefits include the following;

• Allowing an employee to use a work car for private purposes
• Giving an employee a discounted loan
• 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 benefits under a salary sacrifice arrangement with an employee

Where a work car is used by an employee for private purposes, the odometer readings at FBT year end 31 March should be recorded and kept for the year end FBT calculation.

Employers must be registered for and lodge an FBT return if an FBT liability arises during an FBT year. Registration can be completed a number of ways, including via the Australian Government Business Registration Services or with McFillin Accounting as tax agents.

If you are unsure about your FBT responsibilities, please don’t hesitate to get in touch with us and we can discuss with you.

Please note – the due date for lodgement of the 2022 FBT Return is Monday 27^th June 2022.