Fringe Benefits Tax (FBT) Return Preparation

Fringe Benefits Tax (FBT) Return Preparation

Every employer who provides fringe benefits to their employees (or their associates) must prepare and lodge an FBT return. The FBT is a tax paid on payments to employees other than wages or salary. The FBT applies to all business structures such as sole trader, partnership, trust and company.

The FBT year runs from 1 April to 31 March. The FBT return is required to be lodged with the Australian Taxation Office (ATO) no later than 21 May each year (or 28 May, if lodged by a registered tax agent).

There are 13 categories of fringe benefits, here are the three of the most commonly provided fringe benefits, namely:

• car fringe benefits (Method A - Cars using the statutory formula & Method B - Cars using the operating cost method)

• expense payment fringe benefits, and

• meal entertainment fringe benefits.

Other fringe benefit categories are:

• Loans granted

• Debt waiver

• Expense payments

• Housing – units of accommodation provided

• Employees receiving living-away-from-home allowance

• Airline transport - airlines and travel agents only

• Board – meals provided to employee and to family members living with the employee

• Property – provide an employee with property (for example, goods), either free or at a discount

• Car parking

• Other benefits (residual) – any right, privilege, service or facility

We prepare and lodge the FBT return on behalf of our client. If you are considering a salary packaging or sacrifice arrangement (for example, novated car lease) for your employees we can give you advice. Call us on 0425 301 703 to arrange an appointment.