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FRINGE BENEFIT TAX – WHAT YOU NEED TO KNOW!

Fringe Benefit Tax (FBT) time is just around the corner, the FBT year ends on 31 March.  FBT is a tax levied on businesses for non-cash benefits provided to employees or a family member of an employee in addition to their normal pay.

These benefits can include:

  • Providing a work vehicle to an employee which is also available for personal use.
  • Car parking benefits
  • Entertainment benefits e.g. meals, drinks, holidays, tickets to an event or sporting match.
  • Paying for personal expenses e.g. school fees, health insurance, accommodation.
  • Loans to employees at reduced interest rates.

If you have provided a fringe benefit to employee during the FBT year, you may have an FBT liability and should lodge an FBT return to the ATO.

However, there are also Exemptions and Concessions available to help reduce your FBT. By keeping accurate records, including some that need to be recorded as at 31 March 2023, you can help improve your chances of meeting eligibility criteria when the time comes to review your FBT obligations at the end of the FBT year.

You can find more information about FBT here:

https://www.ato.gov.au/Business/Fringe-benefits-tax/

 

The content within these articles was correct at the time of writing. Please contact us for updated information and advice. 

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.

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