Previously the ATO has not focused its efforts on Fringe Benefits Tax (FBT) and therefore many business owners have put their heads in the sand and ignored it. But this isn’t a great strategy and with the ATO now putting more emphasis in this area it could land you in hot water. Here is what you need to know.
The annual fiscal period for Fringe Benefits Tax (FBT) ends on the 31st March 2013 and is fast approaching. The due date for lodgement of the 2013 FBT returns is the 28th May 2013. Employers have obligations to declare the value of benefits provided to employees during the period from 1 April – 31 March annual. In order to lodge an FBT return the employer’s business entity must be registered for FBT with the Australian Taxation Office.
Employee incentive schemes are a common strategy to increase loyalty, improve motivation and productivity and also reduce employee turnover, particularly for key staff members.