Unlike other taxes, the Fringe Benefits Tax year runs from 1 April to 31 March.
FBT Returns need to be lodged with the ATO by 21st May 2010 (or if you use a tax agent to lodge for you, by the 28th May).
With a few exemptions and reductions, FBT is paid on the grossed-up taxable value of the benefits provided.
Items included in the Fringe Benefits Tax Act: ·
- car fringe benefits;
- loan fringe benefits;
- debt waiver fringe benefits;
- expenses payment fringe benefits;
- housing fringe benefits;
- board fringe benefits; a
- airline transport fringe benefits;
- living away from home allowance;
- entertainment benefits;
- car parking; and
- in some cases, property residual fringe benefits.
If a benefit does not fit in any of the 13 categories it will be classified as a residual fringe benefit.
A Fringe Benefits Tax exemption applies for the following work related items:-
- portable electronic device;
- item of computer software;
- item of protective clothing;
- brief case; and
- tools of trade.
Exemption is limited to items primarily for work related use and limited to one item per Fringe Benefits Tax year for items that have a substantially identical function unless the item is a replacement item. Certain minor benefits are not included for GST including newspapers; employee subscription to a trade or professional journal; an employee membership fee for a corporate credit card; an employee membership fee for an airline lounge membership; and taxi travel provided to employees.
The Tax Office FBT guide for employers provides a pretty extensive overview for business owners on various fringe benefits and their reporting obligations.
FBT can be a tricky area. If you have any concerns, or simply do not understand your obligations, you really should speak with your accountant
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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