Its nearly that time of year again when businesses in Australia need to get ready to lodge a Fringe Benefits Tax Return. At Aptus we wanted to take a minute of your time to remind you what a fringe benefit is and how the FBT regime can impact your business.
What is a Fringe Benefit?
Fringe Benefits are non-cash benefits a business provides to their employees, employees’ family or associates. Many small businesses that provide non-cash benefits to employees, on top of their salaries or wages, may in fact not realise that they are subject to FBT. Non-cash benefits can be anything from providing a car, entertainment expenses, car parking, reimbursing private expenses, living away from home, loan repayments and other expense payments such as gym memberships.
What does it mean if you provide Fringe Benefits?
If you provide fringe benefits you may be liable for Fringe Benefits Tax, and you will need to start to collate information and ensuring you have substantiation documents. Data matching has become an area the ATO is focusing on, so being able to validate your FBT documents is essential. This is also a good time to review your general ledger accounts to find any hidden FBT expenses! If you are unsure if your business is impacted, please contact us and we can work through it together.
What dates applies to FBT?
The FBT year runs from 1 April to 31 March and if you are liable to pay Fringe Benefits Tax, it will be due on 28 May.
How will Aptus help you with your FBT obligations?
Aptus will be emailing out our FBT packs in the coming weeks. Included in the FBT pack will be:
– A checklist detailing the types of fringe benefits and how you can identify them, and
– A car expense questionnaire – as cars are the most common benefit provided, we always send a questionnaire with the pack. This questionnaire captures all the information we will need for each vehicle you use in the business.
If you do not receive a pack, please contact the office and we will organise for one to be sent to you.
Once you get your pack, please fill it in and send it back to us as soon as possible. We will then review and help you determine if you need to lodge and FBT Return, then prepare and lodge this return for you if needed.
Keep an eye out for your pack and stay tuned for the further articles on motor vehicle tips & traps, entertainment rules and changes to work related travel.