It is now time for business owners to turn their attention to their FBT exposure and establish a game plan to set yourself and your business up for success.
Navigating FBT 2024
It is now time for business owners to turn their attention to their FBT exposure and establish a game plan to set yourself and your business up for success.
What are Fringe Benefits?
Broadly speaking, fringe benefits refer to the rights, privileges, salary-sacrifice or employment-related items (i.e. meal entertainment) provided by an employer to their employee (or associate), in respect of their employment.
Common Fringe Benefits
There are various categories of Fringe Benefits. The common Fringe Benefits include:
- Car Fringe Benefits
- Entertainment Fringe Benefits
- Living away from home allowance Fringe Benefits
- Loan Fringe Benefits
- Car parking Fringe Benefits
- Expense payment Fringe Benefits
- Housing Fringe Benefits
FBT or Fringe Benefits Tax is a tax an employer pays on certain benefits they provide to their employees, including their employee’s family and other associates [those listed above].
There are however, several exemptions and concessions available for FBT purposes.
What are the deadlines
The Fringe Benefits Tax [FBT] year ended 31 March 2024 [running 1 April 2023 to 31 March 2024].
It is now time for businesses to determine if they have an FBT exposure and if so start to collate the relevant information to complete an FBT return for the 2024 year.
FBT returns are due to be lodged and paid to the Australian Taxation Office (ATO) each year by 21 May, or, if being lodged electronically by an appropriate registered tax agent, by an extended deadline of 25 June.
Activities targeted for Audit by the ATO include
- Motor Vehicle benefits
- Living away from home Allowances
- Car parking valuations
- Gym memberships
- Non-lodgements of FBT return
- Nil Lodgements
