Before The End of The FBT Year
February 9, 2017 by Oliver Sirisonthi
Fringe benefits tax (FBT) is a tax that employers pay on certain benefits they provide to their employees including their employees' family or other associates.
Benefits may be in addition to, or part of, their salary or wages package. The benefits are compensation to an employee or associates in a different form to salary or wages.
Fringe benefits include rights, privileges or services. Typical examples of fringe benefits include private health insurance, use of a company car, or a fitness membership.
Please be advised that fringe benefits tax is separate to an income tax and is calculated on the taxable value of the fringe benefits provided.
Sometimes employers find the FBT is complicated because there are various categories of fringe benefits and specific valuation rules for each type of fringe benefits applied according to Australian taxation law.
These are some examples:
- Car fringe benefits
- Car parking fringe benefits
- Entertainment fringe benefits
- Loan fringe benefits
- Debt waiver fringe benefits
- Housing fringe benefits
- Board fringe benefits
- Living away from home allowance fringe benefits
You need to register for fringe benefits tax (FBT) once you have determined that you are providing fringe benefits and have to pay FBT. The FBT year runs from 1st April to 31st March.
Now we are in February and the FBT year end is approaching. If you are liable for fringe benefits tax to the ATO, it is better to prepare the FBT tax form before it is too late.
At the end of this month, the Business Activity Statement (BAS) for the quarter ending 31 December 2016 is due for lodgement and payment for businesses registered for GST (if the businesses select to lodge the BAS quarterly).
At the end of next month, 31st March 2017, it is the end of the fringe benefits tax (FBT) year. You must lodge your FBT tax return by 21st May 2017. However, if a registered tax agent is preparing your FBT tax return on your behalf, different lodgement arrangements may apply.
If you are unsure about your situation regarding the fringe benefits tax (FBT), please contact the ATO or your registered tax agent/accountant.
For more information, see here.
Just a quick note to say that Oliver’s post is not to be taken as financial advice. They’re simply insights drawn from his experience in the accounting industry. If you need financial advice for your business, please contact a professional.