On April 1, 2016 By Rocky Singh
What I need to know?
Fringe benefits tax (FBT) is a tax employers pay on certain benefits they provide to their employees, including their employees’ family or other associates in addition to, or part of, their salary or wages package.
If you are a director of a company or trust, benefits you receive may be subject to FBT. Fringe benefits tax is separate to income tax and is calculated on the taxable value of the fringe benefits provided. The statutory due date for lodgment and payment for FBT year ended 31st March 2016 is 21 May 2016. FBT rates increases from 47% to 49% from 1st April 2016.
Different types of Fringe Benefits
Car Fringe Benefit, Car Parking Fringe Benefit, Entertainment and Fringe Benefit, Loan Fringe Benefit, Housing Fringe Benefit and others.
Car Fringe Benefit
This is the most common fringe benefit which a business pays to its employees including directors and associates. If you make a car you own or lease available for the private use of your employee, you may provide a car fringe benefit and liable to pay Fringe Benefit Tax. You must be doing following:
Maintain a valid Logbook recording your personal and business travel. If you have not done before do this as soon as possible.
Take a note of closing odometer of your vehicles as on 31 March 2016.
Some benefits are exempted from Fringe Benefits tax provided to employees) of the business including Directors and associates. Following Work related items (one item per FBT year) are exempted from FBT:
Portable electronic devices that are provided primarily for use in the employee’s employment – further information below
An item of computer software;
Protective clothing required for the employee’s job;
A briefcase; A calculator; A tool of trade
What we do
If your business falls under FBT, we can help you with Fringe Benefit Tax registration with the Tax Office, prepare FBT return for your business and lodge this to the Tax Office. ATO has two methods for FBT calculation, we work out the best method to minimize your FBT liability and apply exemptions, if your business is eligible for.
If you have any question or would require further information, please call us on (07) 3393 2221.