Fringe Benefits Tax Time 2022
The FBT rules tax employers on certain non-cash benefits provided to employees (or an associate of an employee, such as a spouse). Examples of fringe benefits can include (noting that exclusions do apply):
Car – letting an employee use a company car for private use
Loans – lending to an employee at a lower rate of interest than the ATO statutory rate
Expense payments – reimbursements or payments to third parties on behalf of the employee such as school fees, travel costs, parking etc. excluding allowances
Property – both tangible and intangibles such as money, food and drinks, goods, shares/bonds, real estate etc.
A more extensive list provided by the ATO can be found here.
The ATO has also addressed benefits that have been provided because of COVID-19 and lists the relevant exemptions and concessions available to reduce your FBT liability here.
If you provide your employees with benefits or lifestyle assets to use for their personal enjoyment, you need to ensure that you are meeting your FBT obligations by keeping appropriate records for any benefits provided. FBT is separate to income tax and is calculated on the taxable value of the fringe benefit. The employer must self-assess their FBT liability for the FBT year (that is, 1 April to 31 March) and lodge an FBT return. The FBT rate for this year, ending 31 March 2022, is 47% and you must lodge as well as pay your FBT return by 23 May 2022. Extensions are applicable to Tax Agents.
Need Cordner Advisory to help?
We can assist you in calculating your FBT liability and lodging your return, as well as provide you with strategies on implementing or reducing your FBT practices. Just contact us on 07 5504 5700 to speak to one of our trusted advisors today.
Cordner Advisory - Your Business Advisory, Accounting & Tax Specialists. Catering for clients all across Australia, from the golden beaches of the Gold Coast and Sunshine Coast to the capital cities such as Brisbane, Sydney and Melbourne
Navigate your FBT obligations effortlessly with Cordner Advisory. Our team is ready to calculate your liability, lodge your tax return, and help reduce your FBT practices. Contact Cordner Advisory for a focused FBT consultation today.
