It's FBT time of year again. Fringe Benefits Tax (FBT) is one of those obligations imposed by the ATO that businesses can't ignore.
Employers who provide fringe benefits to employees during the year need to assess whether they have a requirement to pay FBT.
What is a fringe benefit?
A fringe benefit is a non-cash benefit made to an employee, not in the form of salary or wages—for example, letting an employee use a company vehicle for personal use or paying a gym membership or school fees.
Do you provide fringe benefits to your employees?
Please complete the questionnaire below to help determine if your business has any FBT obligations. By providing this information, you can minimise the risk of an ATO audit. Should the ATO select your business for audit, you can provide them with a questionnaire as evidence that your business made a concerted effort to follow current FBT legislation.
Please complete the questionnaire by May 15, 2023, and scan and email it to firstname.lastname@example.org. If an FBT return is necessary, lodgement must be made by June 27, 2023.
If you operate your business through a company or trust, you're considered an employee, so be sure to include any perks you received during the year.
A common area of confusion around FBT is with motor vehicles. Where a motor vehicle is owned or leased by a business and used by an employee for private purposes, FBT is an issue
Please provide your logbook with the questionnaire if you use a car for work-related travel. If we don't have your logbook, we must calculate your FBT liability using a statutory formula method.
If you feel no benefits have been provided to employees, please still complete the questionnaire, sign the declaration and return it to our office for provision to ATO if required.
Please contact our office if you have questions or need assistance completing the questionnaire.