KNS Accountants are experts in this field and can help you with your FBT calculations, returns, and reporting. We provide an efficient service that will save you time and money.
What Are Fringe Benefits Tax?
If you are an employer in Australia, it is important to know how FBT works. FBT stands for fringe benefits tax, and it applies to certain payments made by employers to employees. Typically, this is in addition to an employee’s wage or salary.
Generally, offering benefits to employees is a way to attract and retain new employees or motivate existing employees – it’s one way to offer an edge against competitors.
Some of the most common fringe benefits include:
- Personal use of a company car
- Gym memberships
- School fees for employee’s children
- Private health insurance
- Low-interest company loans
- Entertainment such as cinema tickets or accommodation
Your FBT Liability
If you, as an employer, provide fringe benefits to your employees, you’ll likely be liable for fringe benefits tax. FBT is calculated on the taxable value of the fringe benefit (it is separate from income tax).
In other words, the cost of that fringe benefit is taxed at a rate of 47%.
Thankfully the Australian Taxation Office (ATO) does allow certain benefits to be considered FBT exempt benefits, including:
- Work-related items such as protective clothing and tools of the trade
- Benefits that amount to less than $300
- Car parking
- Taxi travel
- Emergency assistance
Submitting FBT Returns
You need to report fringe benefits that you provide to your employees if the total taxable value in an FBT year exceeds $2,000.
It’s important to note that the FBT year operates differently from the ordinary financial year. Unlike the financial tax year, which runs from 1 July to 30 June, the FBT year runs from 1 April to 31 March.
So, you need to register for FBT and lodge an annual FBT return with the Australian Taxation Office (ATO), separate from your business annual tax return. You can lodge your FBT returns by post or electronically using business reporting software. Alternatively, you can lodge via KNS Tax Agents.
Generally, the payment dates to lodge and pay FBT is 21 May, but if you lodge through a KNS tax agent, your due date is extended to 25 June.
If you need help with your FBT liability and filing your FBT return, KNS Tax Practitioners and Accountants can offer assistance with the following:
- Understanding what is considered a fringe benefit
- Fringe benefits tax calculation and reporting
- Determining whether or not a payment is subject to fringe benefits tax and must be reported on your FBT return
- Calculating the taxable value of fringe benefits received by the employee
Why Choose KNS Accountants To Lodge Your FBT Return?
If you’re like most employers, then the thought of filing your Fringe Benefits Tax (FBT) is enough to make your head spin.
Luckily for you, we can help!
We know that FBT isn’t something that should be taken lightly, and it needs to be done right. That’s why we offer a full range of services designed specifically for employers who need assistance with their FBT returns. From preparing and lodging your return to ensuring compliance throughout the year, we have everything you need under one roof, so there are no surprises come tax time.
We’re a team of professional accountants who are passionate about helping our clients. We know how important it is to stay compliant, and we want to make sure you do too.
You can trust us to take care of all your FBT needs so you can focus on running your business and growing it successfully. Let us handle the hard work for you while staying compliant at all times.
Speak to Our Accountants, Business Advisors, and Tax Agents Today!
With over 20 years of combined experience in the industry, we understand the intricacies of running a successful business. We offer an array of services tailored to suit your needs, including bookkeeping, financial statements, tax returns, and much more.
We’re committed to providing the highest level of service with a personalised approach to every client we work with. We have expertise in all areas of taxation, including FBT returns. Our other services include auditing, accounts preparation and management reporting, as well as financial planning services.
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