Yes that right, its FBT time again. With the FBT year ended 31 March 2018 it is time to make sure that you have you records in order.
What does this mean for you?
Yes that right, its FBT time again. With the FBT year ended 31 March 2018 it is time to make sure that you have you records in order.
What is FBT?
FBT [Fringe Benefits Tax] is a tax employers pay on certain benefits they provide to their employees, including their employee’s family and other associates.
There are various categories of FBT. They are:
- Car fringe benefits;
- Car parking fringe benefits;
- Entertainment fringe benefits;
- Expense payment fringe benefits;
- Loan fringe benefits;
- Debt waiver fringe benefits;
- Housing fringe benefits;
- Living away from home fringe benefits.
Each category contains specific valuation rules in order to calculate you likely FBT position/exposure.
What to look out for in 2018
Every year the ATO outlines it ‘focus’ areas relating to compliance matters. This year is no different. Whilst as an employer you must ensure compliance to all matters, particular focus this year should be to their motor vehicle fleet.
FBT and Motor Vehicles
It’s no secret that the ATO has been using data matching programs to identify potential underpayment of taxes. One of these programs is specially designed to identify underpayment payments of FBT relating to motor vehicles. This includes matching Road Traffic Authority details with business ownership.
- What you need to know
- Focus this year will be on employers incorrectly claiming the exemption for certain types of motor vehicles such as utilities.
- Specifically that their private use was minor and infrequent, and private use is limited to travel to and from work.
- Our Advice
- Maintain a logbook for every motor vehicle
- Have your employees sign declaration limiting their private use to travel between home and work.
I think my business is required to submit an FBT return, what should I do now?
Determining FBT is a complex process. Therefore before completing a return you should seek advice that is relevant to your business and specific circumstances.
For assistance please see our initiation letter and associated documents by clicking here or contact us on (02) 4601 1000 [Camden] or (02) 4210 6030 [Wollongong]..
