FRINGE BENEFITS TAX – REPORTING, LODGING AND PAYING
The (FBT) year is from 1st April to 31st March so we thought it would be a timely reminder to all Employers to ensure correct records have been kept throughout the year so that you are FBT compliant.
The ATO (Australian Taxation Office) provides the following meaning of “Fringe Benefits”: The terms benefit and fringe benefit have broad meanings for FBT purposes. Benefits include rights, privileges or services. For example, a fringe benefit may be provided when an employer:
• allows an employee to use a work car for private purposes
• provides entertainment by the way of free tickets to concerts, movies or sporting events
• Social functions at a restaurant or a Christmas Party for Employees and their families
• Gifts to Employees such as Wine, Christmas Hampers, Flowers
• Business Lunches and Dinners at a Restaurantor Similar Venue
The most popular Fringe Benefit provided is the Motor Vehicle and at the start of April each year we provide a checklist to enable you to record certain things that will assist us in calculating the Private use of the Motor Vehicles provided to your Employees by your business.
These include:
• Car Odometer readings as at 31st March
• Car Log Book Business Use Percentage
If you prepare your own FBT return, you must lodge a return and pay the FBT you owe for the FBT year by 21 May. If you have a tax agent that lodges your return electronically, the due date to lodge and pay is 25 June.
If you’re registered for FBT but don’t need to lodge an FBT return for the year, complete a Fringe benefits tax – notice of non-lodgment.