FBT Concessions And Exemptions
Some advantages are exempt from fringe benefits tax (FBT) or receive concessional treatment (for instance, living-away-from-home allowances). Particular exemptions and concessions apply to some not-for-profit organisations.
Should You Be Signed Up For FBT?
Generally, if you have staff members (consisting of Directors) and you supply them with cars and trucks, vehicle parking, home entertainment (food and beverage), worker discount rates, loans, or compensate private costs, then you are most likely to be offering an additional benefit and we will need to register your service for FBT
It is very important you start gathering all the information of these provided advantages as quickly as possible using our yearly FBT Survey and Schedules, so we can calculate any potential FBT liability and lodge your FBT return on time– due 25 June 2021 with payment to be made by 28 May 2021.
FBT Exemptions Under The Radar, read the official statement.
Should You Lodge An FBT Return Even If No FBT Is Payable?
Where no FBT is payable there is legally no need to lodge an FBT return, however, should you lodge one anyhow?
Our strong recommendation to you is yes, you must lodge an FBT return, even if no FBT is payable.
This limits the ATO’s audit window to just 3 years from the date of lodgement. Otherwise, the ATO is entitled to go back an endless variety of years and investigate your company and possibly find areas where they will change your FBT and charges.
We have assembled an FBT Fact Sheet that details a few of the easy points that the ATO will review if you are chosen for an audit– How the ATO determines potential audits. We have likewise prepared an FBT Fact Sheet that details why an FBT return is a great concept even where no FBT is payable– Why should you lodge a return.
Rewards And FBT.
Wishing to reward your employees seems like a basic thing, but depending upon how you select to reward them, you might find yourself in a difficult situation. The worst outcome is you end up being overwhelmed by options, taxes, and conditions, and end up giving up the entire idea.
Stopping makes the issue disappear, but just momentarily. More engaged teams are happier, efficient, and efficient.
Something you may have discovered that makes you want to give up is the Additional benefit Tax (FBT). It’s hard to understand when FBT applies and when it doesn’t, and each kind of benefit can have its implications.
What Is An Additional Benefit?
Fringe benefits are products provided to workers that are not a cash and are outside of their routine wage.
They include items such as
- Utilizing work cars and trucks for individual purposes
- Providing workers loans at a discounted rate
- Spending for fitness centre subscriptions
- Home entertainment like tickets to occasions
- Reimbursing an employee’s expenses
- Benefits connected to salary sacrifice contracts
What Items Are Exempt From FBT?
If you’re supplying items like mobile phones, laptops, tablets, portable printers, protective clothing, tools of the trade and so on, or small and irregular advantages that are less than $300 in worth, you are unlikely to have to worry about FBT.
If the benefits are both small and infrequent, the exemption just applies. To discover if you pass these tests– have a look at our Applying the Minor & Infrequent Advantages Exemptions factsheet.
You can submit our FBT Survey and Schedules to be 100% sure.
An Easier Way To Manage Your Automobile Logbooks
For companies with 20 or more ‘tools of the trade’ cars and trucks– an automobile needed for the job, like for a sales rep travelling thoroughly for business– the ATO has a new procedure for validating the business use percentage of the automobile.
It’s called the ‘simplified technique’, and if you fulfil the access conditions, you can use a typical company’s use of all ‘tools of trade’ automobiles in your fleet for the first logbook year and the next 4 years. Conditions to be satisfied are:
legitimate log books kept for at least 75% of the cars and trucks in the logbook year;
the company picked the make and design of the car, not the employee;
each fleet vehicle has less worth than the ‘high-end car’ limitation when bought, usually $67,525 in 2019/2020;
the cars aren’t provided under an income product packaging plan/ employee compensation package; and
your workers can’t pick to receive additional compensation instead of using the vehicles.