Fringe Benefits Tax (FBT)

Written by - Client Manager - Megan Lipp CPA

As the FBT (Fringe Benefits Tax) year once again draws to a close (31st March 2018), we again remind you of the importance of meeting both your obligations in relation to providing employees with ‘benefits’ and further the importance of completing and lodging a Fringe Benefits Tax return with the Australian Taxation Office. 

Even if you have not done so in the past, now is a good time to review your circumstances for possible Fringe Benefits being provided to your employees, directors and associates. Some of the more common types include: 

• Making vehicles owned or leased by the business available to employees (including directors and associates) for private use 
• Providing loans at reduced interest rates to employees 
• Paying for, or reimbursing, any private expenses incurred by employees 
• Providing employees with living-away-from-home allowance 
• Providing entertainment by way of food, drink or recreation to employees (including any Christmas party) 
• Providing any employees with a salary package (salary sacrifice) arrangement 
• Providing any employees with goods at a lower price than they are normally sold to the public 

Once again the ATO has signalled that there will be an increased focus on FBT this year and that it will use its ever-increasing powers of access to use various data matching programs. This includes data matching with the Road Traffic Authorities, information from taxation return labels completed in lodged tax returns, as well as reviewing any vehicle leasing documents or financing arrangements to detect new vehicle purchases. 

We are this year encouraging all our clients to lodge an FBT return. Why? When you lodge an FBT return or non-lodgement advice, the ATO can only audit your FBT obligations within a three-year deadline. If you don’t lodge, the ATO has no restriction on how many years of FBT obligations it can audit, potentially resulting in large tax liabilities, interest and penalties.  

Please see the attached link for further information on the importance of lodging an FBT return. 

If you would like additional information about FBT contact us on (07)4616 9000 or email info@dcadvisorygroup.com.au.

Key Links 

FBT Fact Sheet

This information is of a general nature only and has been provided without considering your objectives, financial situation or needs. Because of this you should consider whether the information is appropriate considering your objectives, financial situation and needs.