End-of-Financial-Year Checklist for Businesses
Don’t let the end of the financial year catch you off guard. Use our EOFY checklist to get organized, stay compliant, and plan for growth. Read More…
By D'Lene Browning
What is Fringe Benefits Tax and how do I stay compliant?
Fringe Benefits tax (FBT) is a tax imposed on employers for non-cash benefits provided to employees (or an associate of an employee) in respect of employment.
The tax is imposed on the grossed-up taxable value of the benefit provided to employees during the FBT year (1 April to 31 March) at a rate of 47%. Employers can generally claim an income tax deduction for the cost of providing fringe benefits and for the FBT they pay.
ATO audit activity in the FBT area has significantly increased in the past year or so. For example, by using information obtained via State (Motor Vehicle) registration records the ATO can see the number and type of vehicles owned by your business.
Fringe Benefits Tax is often overlooked by business owners as they are unaware what employee benefits may result in FBT liability. For your business consider:
Please refer to our website for further explanation on the types of Fringe benefits. There are many inclusions, exclusions and exemptions
for each of the benefits that can’t be explained in detail here, however, please feel free to contact our office to discuss these in further
detail specific to your business and circumstances.
Client Services Supervisor
End-of-Financial-Year Checklist for Businesses
Don’t let the end of the financial year catch you off guard. Use our EOFY checklist to get organized, stay compliant, and plan for growth. Read More…
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The ATO recently published some ‘wild claims’ that business owners had tried to make for business expenses. But what CAN you claim and what CAN’T you claim? Read More…
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