FRINGE BENEFITS TAX

FBT is a tax payable by employers on certain benefits they provide to their employees. These benefits may be in addition to or including their salary and wages package.The FBT year runs from 1 April to 31 March. You must lodge your return and pay the total FBT amount you owe for the year by 25 June.

Examples of fringe benefits employees may receive include:

• Providing a car for private purposes
• Entertainment
• Reimbursement of expenses incurred by an employee
• Direct payment of an employees’ personal expenses
• Providing an employee with a loan

If your business provides fringe benefits to your employees you need to:

• Register for FBT
• Keep the necessary records
• Determine the type of fringe benefits provided
• Calculate the taxable value of each benefit
• Determine the FBT payable
• Report fringe benefits on your employees’ payment summaries
• Lodge an FBT Annual Tax Return and pay the required FBT to the ATO by the due date