Key Accountants Pty Ltd can identify and calculate your Fringe Benefits Taxation liability. We can also assist in salary packaging for Companies and employees. For example; fully/partial novated motor vehicle leases and superannuation packaging.
Fringe benefits tax (FBT) is a tax employers pay on certain benefits they provide to their employees – including their employees’ family or other associates.
The benefit may be 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.
FBT is separate to income tax and is calculated on the taxable value of the fringe benefits provided.
The FBT year runs from 1 April to 31 March.
You may be required to pay fringe benefits tax (FBT) if you provide certain fringe benefits to an employee (or their associate) in respect of employment. An employee can be a current, future or past employee, or a director of a company or trust.
You will need to pay FBT even if the benefit is provided to an associate of your employee or by a third party under an arrangement with you. Examples of fringe benefits include:
• allowing your employee to use a work car for private purposes
• giving your employee a discounted loan
• paying an employee's gym membership
• providing entertainment by way of free tickets to concerts
• reimbursing an expense incurred by your employee, such as school fees
• giving benefits under a salary sacrifice arrangement with an employee.
Some employers, including charities, need to assess the status of their workers when working out their FBT liability. Generally, benefits provided to volunteers and contractors don't attract FBT. You must self-assess your own FBT liability each FBT year (1 April to 31 March) and lodge an FBT return before the due date.