FBT is an area that is easily and commonly overlooked so we’re asking people to reflect on some common FBT management issues.
If your business is not currently registered for FBT, it is very important that we actively determine whether you have incurred an FBT liability during an FBT year (1 April to 31 March), to ensure you are complying with the Australian Taxation Office guidelines.
For further information on FBT, please click on the following link FBT Legislation – A guide to employers.
What is FBT?
A fringe benefit is a ‘payment’ to an employee, but in a different form to salary or wages.
For fringe benefits tax (FBT) purposes, an employee includes a:
- current, future or past employee
- director of a company
- beneficiary of a trust who works in the business.
Examples of fringe benefits include:
- allowing an employee to use a work car for private purposes
- giving an employee a discounted loan
- paying an employee’s gym membership, childcare fees etc.
- 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.
What do you need to do?
If you believe that any of the FBT examples above may apply to you, please complete this FBT Client Questionnaire.
If we can assist you with any information about the FBT questionnaire, or in any other way, please feel free to contact our office on (02) 6584 7776.