A fringe benefit is a payment made to an employee or their associates (e.g. a family member) during the course of employment that is not in the form of salary or wages. The Fringe Benefits Tax (FBT) is the tax associated with these different forms of payment, with the tax being based on the taxable value of fringe benefits provided. It differs from income tax. The fringe benefits tax year runs from 1 April to 31 March.
When is Fringe Benefits Tax return due?
The lodgment deadline for your 2014 FBT return is 21 May. While this date has been extended for electronic lodgments made by tax agents this FBT year, you must be a registered as your tax agent’s client by 21 May in order for the extended date to apply.
What are some Fringe Benefits?
“Benefits” can be rights, privileges or services. Fringe benefits you may provide may include;
Costs that you incur as a result of providing certain fringe benefits may be an allowable income tax deduction.
You must report on your employee’s payment summary for the FBT year certain fringe benefits that you have provided to them or their associates which have a total taxable value of more than $2,000. As fringe benefits are grossed-up, if an employee receives benefits with a total taxable value of $2,000.01 during the FBT year, for example, the reportable fringe benefits amount is $3,738.
Keep records of the fringe benefits you provide to your employees or their associates so that you are in a position to comply with your FBT obligations. It is advisable that all records such as invoices which relate to fringe benefits you provide are kept for a minimum of five years.
If you have any questions or would like to ensure that you are complying with your FBT obligations correctly and handling them efficiently, please don’t hesitate to contact the team of experienced tax accountants and tax lawyers here at The Quinn Group. Call 1300 QUINNS to arrange an appointment, or submit an online enquiry today.