If you’ve been giving your employees perks like car parking or gym memberships, you should consider the fringe benefits tax (FBT) implications.
These extras can be a great bonus on top of salary and wage income. But did you know they may be subject to FBT?
Keep in mind that everything in the list below could be subject to FBT:
• allowing an employee to use a work car, including a dual cab ute, for private purposes
• car parking
• tickets to concerts, shows or sports events
• reimbursed school fees
• discounted loans
• salary sacrifice arrangements with staff.
If you’re giving your staff extras that are subject to FBT, take these four steps:
• Identify the types of fringe benefits you give your staff
• Determine the taxable value using approved valuation methods relevant to each fringe benefit
• Lodge an FBT return by the due date (that may be a little later if your tax agent lodges online for you).
• Keep records that show your calculations and support your FBT position.
Knowing your FBTs starts with understanding how FBT works. Keen to learn more? Check out the website below or talk to your trusted tax professional for the best advice on managing your FBT obligations.
https://www.ato.gov.au/Business/Fringe-benefits-tax/?=redirected_fbt