Fringe Benefits Tax (FBT)
In this blog we simplify and explain what the fringe benefits tax is and how it affects you.
The 31st March marked the end of the FBT year.
Basically, if you provide your employees with a benefit other than wages, superannuation, etc then you are likely to be providing your employees with Fringe Benefits.
There are some exemptions and thresholds that are applicable, however you are still required to prepare certain documentation and keep relevant records.
Examples of fringe benefits include, but are not limited to:
- Motor vehicles;
- Work Christmas Parties;
- Corporate box/sporting events;
- Employee loans;
- Employee car parking;
- Certain gifts to employees;
- Lunch/dinner/alcohol for employees.
The ATO are cracking down on employers FBT obligations, and with advances in data matching identifying non compliance is becoming simpler.
Here is a short video to recap information in relation to motor vehicle fringe benefits.