Fringe Benefits Tax (FBT)
What is Fringe Benefits Tax?
Fringe Benefits Tax is a tax on employers that provide non-cash benefits to their employees.
Fringe benefits can include benefits like car parking, health insurance, meals and entertainment, company car, mobile phones and computers.
Are you providing a fringe benefit?
If you answer ‘yes’ to any of the following, chances are you may be liable to pay fringe benefits tax:
- Do you allow employees to use a work car for private purposes?
- Do you pay for an employee’s private health insurance costs?
- Do you have a salary package arrangement with any of your employees?
- Have you given goods such as computers to your employees either free of charge or at a discount?
- Do you provide entertainment, such as food, drink or recreation to your employees?
- Do you provide employees with a living away from home allowance?
- Do you provide loans at reduced interest rates to any employees?
How much is fringe benefits tax?
- Employers pay fringe benefits tax at the top marginal rate of 46.5%.
When is the FBT return due?
The FBT year runs from 1 April – 31 March and must be lodged and paid by 21 May each year.
Annual FBT liabilities of $3,000 or more are paid by quarterly instalments as part of the employer’s business activity statement.
How do you calculate Fringe Benefits Tax?
To calculate FBT you need to know the taxable value of the fringe benefit. The calculation will change depending on the type of benefit provided.
Do you have a question or want to speak to a professional about our fringe benefits tax?
Call us today on 02 9223 9166 to discuss how Quinn Consultants can help you fringe benefits tax and a range of business tax services. Alternatively, leave your message here and we will get endeavour to respond to your enquiry the following business day.