The Fringe Benefits Tax (FBT) year will come to an end on 31 March 2023. If you have provided any fringe benefits to your employees during the year, your business may be liable for the fringe benefits tax.
If an FBT return is required to be prepared, you must be registered for FBT and lodge the return by 21 May 2023. If however the FBT return is lodged electronically by your tax agent, the due date for lodgement and payment is extended to 25 June 2023.
To help you understand your FBT obligations, we have put together a checklist of some common fringe benefits provided by employers. If you are unsure whether the benefits you have provided to your employee should be included in your reportable fringe benefits, speak to one of our experienced tax specialists today.
Fringe Benefits Tax Checklist
The purpose of this checklist is to provide examples of some common fringe benefits. It is not an exhaustive list and should be used as a guide only to help you better understand your FBT obligations. It is important to note that, in addition to your employees, the fringe benefits tax also applies to any of the below benefits that were provided to an employee's partner or family member, directors, shareholders, or beneficiaries.
Motor Vehicle Benefits
□ A car provided to an employee (owned, leased or hire purchased by an employer)
□ A car available to an employee for private use (even if the vehicle is not used)
□ Any lease or hire purchase payments reimbursed by an employee
□ Other employee car expenses reimbursed by an employer
□ The sale of a motor vehicle to an employee at less than market value
Important note: Eligible electric vehicles may be exempt from the fringe benefits tax.
Meal Entertainment Benefits
□ Entertainment by way of food or drink with or without clients (e.g. lunches, Christmas functions, cocktail functions, entertaining clients)
□ Accommodation or travel with the provision of entertainment by way of food or drink (e.g. taxi or bus fare to and/or from a function)
Other Entertainment Benefits
□ Recreation or leisure provided to an employee (e.g. tickets to sporting and theatrical events, lease of a corporate box, golf days, musicians at functions).
□ Reimbursement of entertainment expenditure incurred by an employee.
Car Parking
□ Car parking (on-premises or elsewhere) is provided to an employee, and a commercial all-day car park is within a one-kilometre radius.
Important note: Broadened definitions of commercial parking stations may impact the way you calculate your car parking benefits.
Property Expenses
□ The provision of property, goods or services at less than market value to employees which are normally sold as part of the employer’s business
□ Other goods or services supplied to an employee (e.g. gifts, computer, electricity supply)
Expense Payments
□ The payment or reimbursement of expenses incurred or paid for by an employee (e.g. school fees, relocation expenses, medical expenses, rates and taxes, home telephone / mobile costs)
□ Allowances
□ Living-away-from-home expenses
Loan Benefits
□ A loan to an employee (even if re-paid in full)
□ An advance to an employee to meet expenses (even if re-paid in full)
Debt Waiver
□ Employee debt released by an employer
Housing
□ Accommodation (temporary or permanent) provided to an employee at less than market value or no cost at all
□ The payment or reimbursement of an employee’s rent expenses or mortgage payments for their usual place of residence
Living Away From Home Allowance
□ An allowance paid to an employee to compensate for additional expenses due to living away from their usual place of residence
Other Benefits (Residual)
□ A benefit not covered above
□ The provision of certain childcare facilities for an employee
□ The use of an employer’s equipment by an employee
Important note: Specific exemptions may apply to some of these benefits. Talk to us today for more information.
Need assistance calculating your FBT liability?
Even with a checklist, navigating fringe benefits tax obligations can be challenging. Our team of tax specialists are experts at identifying and valuing reportable fringe benefits. They are dedicated to keeping up to date with any changes to legislation, tax rulings, and Australian Taxation Office (ATO) data-matching process, and can help you avoid any compliance issues when preparing and lodging your FBT return.
If you need assistance with your FBT return, please get in touch.
Related: Key Changes for the Fringe Benefits Tax (FBT) Season
Have you Have you noticed our #FridayExpertTips... here's one that relates to #Taxation
“If the proposed legislation to make electric and plug in hybrid cars exempt from Fringe Benefits Tax (FBT) is passed, all employers should consider offering their staff the ability to salary sacrifice a car to reduce employees' tax. Get in touch to learn more."
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