FBT Return - Administrator

What is Fringe Benefits Tax (FBT)?

As a business owner, you’re likely aware of the various taxes you need to pay, such as income tax and GST. However, one tax that you may not be as familiar with is Fringe Benefits Tax (FBT). So what exactly is FBT and how does it impact your business?

FBT is a tax imposed on certain non-cash benefits provided by employers to their employees or their employees’ associates. These benefits can include items such as company cars, low-interest loans, and gym memberships. The value of the benefit is taxed to the employer, not the employee, even though the employee receives the benefit.

FBT is calculated on the taxable value of the benefit provided, which is generally the cost to the employer of providing the benefit. The FBT rate changes each year, as per ATO policies, currently it is 47% (2022) of the taxable value of the benefit. FBT is separate from income tax, and it is in addition to it.

It’s important to note that not all benefits provided by employers are subject to FBT. For example, benefits that are considered ‘minor’ and infrequent are exempt from FBT.

FBT can be a complex area, and it is important for employers to understand their obligations and potential liabilities when providing benefits to their employees. At Amaze Accounting, our team of experienced accountants can assist you in understanding your FBT obligations and help you to ensure that you are compliant with all relevant laws and regulations. Contact us today to discuss your FBT needs

Who needs to lodge an FBT Return?

Fringe Benefits Tax (FBT) returns are required to be lodged by any employer who provides fringe benefits to their employees or their employees’ associates during the financial year. An employer is defined as an individual, a partnership, a company, or a trust that has provided fringe benefits to an employee or an associate.

Do I lodge FBT return even if I’m not liable to pay any FBT?

Employers who are required to lodge an FBT return must do so even if they are not liable to pay any FBT. This is because FBT liability is determined by the value of the fringe benefits provided, not whether the employer has a liability to pay tax.

When do I have to lodge FBT return?

It’s important for employers to be aware of their obligations to lodge an FBT return and to understand the deadline for lodgement. FBT returns are due by 21st May following the end of the FBT year, which runs from 1 April to 31 March.

What if I’m not sure?

If you are unsure whether you need to lodge an FBT return, or you need help understanding your FBT obligations, it’s a good idea to consult with an experienced accountant or tax advisor.

How do we help?

At Amaze Accounting, our team of experienced accountants can assist you in understanding your FBT obligations and help you to ensure that you are compliant with all relevant laws and regulations, and to lodge the FBT return in time.

Faq

What is Fringe Benefits Tax (FBT)?

Fringe Benefits Tax (FBT) is a tax that is applied to certain benefits provided by an employer to their employees, including their family and associates. These benefits can include things like company cars, housing, and private health insurance.

Who is liable to pay FBT?

FBT is imposed on the employer, not the employee. Employers are liable to pay FBT on certain benefits provided to their employees.

What types of benefits are subject to FBT?

FBT applies to a wide range of benefits, including:

Cars, car parking, and other transport benefits
Entertainment and sporting facilities
Housing and other accommodation
Interest-free and low-interest loans
Income protection insurance
School fees
Travel and accommodation

How is the value of a fringe benefit determined?

The value of a fringe benefit is determined by using the taxable value method or the statutory formula method. The taxable value method uses the actual cost of the benefit to the employer. The statutory formula method uses a set formula based on the cost of the car and the number of kilometers traveled.

When is the FBT return and payment due?

The FBT return and payment are due on the 21st of the month following the end of the quarter in which the company’s financial year ends.

What are the FBT rates?

The FBT rate is currently 47% for the 2021 financial year.

Are there any exemptions or concessions for FBT?

There are several exemptions and concessions available for FBT, such as small business concessions, the remote area housing concession, and the living-away-from-home allowance concession.

Can I get help with FBT?

Yes, you can get help with FBT from a registered tax agent or from the ATO. They can assist you with understanding your obligations and ensuring that your FBT return is completed correctly.