What is Fringe Benefits Tax?
Fringe Benefits Tax (FBT) is a tax paid by employers on certain non-cash benefits provided to employees, their associates (e.g. family members), or directors e.g. company car, gym membership, health insurance.
It is separate from income tax and is calculated on the taxable value of the fringe benefits provided.
You can learn more about the basics of FBT and how it’s calculated in our FBT blog.
Do you have an FBT liability?
Ask yourself the following:
- Has your business provided entertainment (e.g., Christmas parties, business lunches)?
- Are company vehicles available for private use?
- Are there any salary packaging (salary sacrifice) arrangements?
- Have you provided employees with discounted goods or services?
- Does your business provide car parking, loans, or forgiven debts?
- Have you covered or reimbursed any private expenses for employees?
- Do you provide accommodation or living-away-from-home allowances?
If you answered YES to any of the above, you may have FBT obligations.
Motor vehicles and entertainment can be areas of confusion with complex rules (especially as the treatment of these expenses can interact with income tax and GST), so if you are unsure please check with your accountant.
FBT Exemptions
Certain fringe benefits are exempt from FBT such as portable devices, tools of the trade and protective clothing required for the job.
Additionally, minor benefits valued under $300 and provided infrequently (less than 12 times total per year) may also be exempt.
However, to ensure compliance it’s always best to check with your accountant whether a specific benefit qualifies for exemption.
What is an FBT Return?
An FBT return is a form lodged with the ATO by employers who provide fringe benefits. It reports the total taxable value of benefits provided during the FBT year and calculates the amount of FBT payable.
It’s important for businesses to assess whether they are likely to have an FBT liability and determine if they need to register for FBT.
When are FBT returns due?
The FBT year in Australia runs from 1 April to 31 March.
The standard deadline to lodge and pay is 21 May. However, if it’s lodged through a tax agent and done electronically, the deadline may be extended to 25 June.
Beany’s FBT Return Service
As your accountant, we can help prepare and file your FBT return.
The process involves:
- FBT registration (if you aren’t already)
- Review - we’ll take a look at all your listed items that may fall under fringe benefits and determine the total taxable value
- Calculate - we’ll calculate the FBT amount
- Filing - once you’ve reviewed and approved the return, we’ll file it with the ATO and inform you of the amount and due date for payment.
Requirements for Getting Started
If you think you may be providing benefits or are not sure, please contact Beany. We will ask you some questions (not too hard) and then provide a spreadsheet (not too hard) to assist with the gathering of the required information.
What Beany’s FBT Returns doesn’t cover
- FBT payment - we will not make the FBT payment on your behalf.
In summary: Beany's FBT Returns service enables you to manage your FBT obligations and be compliant with ATO regulations. Pricing from $900.