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FBT SERVICE LINE


TRAINING

Employer Obligations

2023 is the year to add “FBT Service Line” to your services and clients offerings…

ATO Audits, ATO Data Matching, Australian Taxation Office, Employer Obligations, Training & Seminars
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Now is the right time

There has never been a better time to engage with your clients (and new clients) in relation to FBT. The ATO want Tax Practitioners to engage with their clients on FBT.

Some startling facts that highlight the risk for Small Business Employers – and the opportunity for Tax Practitioners:

  • There are 900,000 active employers in Australia – 80% have tax practitioners, 12% (108,000) are registered for FBT, 50% (54,000) are small business
  • 180,000 active employers are not supported by a tax practitioner
  • 792,000 active employers are not FBT registered – most, if not all, are small business – failure to register means there is no ATO FBT audit time limit

The facts don’t lie. The ATO want to remove the registration / compliance blockers that exist for Small Business Employers and their Tax Practitioners.

When an Employer owns or leases, even a small number of motor vehicles (and has not considered FBT previously), the FBT liability exposure can quickly run in to tens of thousands dollars or even hundreds of thousands dollars over multiple FBT years – plus penalties, interest and FTL. We are seeing ATO FBT Auditors requiring FBT Returns to be lodged going back 3 to 4 years.

Find out more about getting your “Practice Certificate in FBT Services” (“PC in FBT”) by clicking here:  PRACTICE CERTIFICATE IN FBT SERVICES

Meal Entertainment v Sustenance – ATO acknowledge the challenge

ATO Audits, Australian Taxation Office, Employer Elections & Declarations, Employer Obligations, Entertainment Expenses, Exempt Benefits, Exempt Cars, FBT Concessions, FBT Events, FBT Returns, Not for profits, Rebateable Employers, Record Keeping, Relocations, Remote Area Benefits, Salary Packaging, Wine
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  • The distinction between entertainment and sustenance, and application of exemptions such as the minor benefit exemption are the most common issues encountered with respect to entertainment
  • Many employers are uncertain as to what is considered to be infrequent and irregular, and what is a reasonable total value of associated benefits, incurring high cost of compliance
  • The ATO acknowledge the above concerns and recognise there are challenges

These are key areas in FBT Compliance and will be discussed in our 2023 FBT Workshops: https://fbtsolutions.com.au/fbt-return-preparation-full-day-workshops/

To help you get ready for FBT 2023 we are running 8 full day Face to Face FBT Workshops and 2 full day Online Workshops across the country in February and March 2023. Here is the full list of locations and dates:

ONLINE: Tuesday 21 February 2023
Sydney: Wednesday 1 March 2023, Hilton Hotel – 488 George Street
Parramatta: Friday 3 March 2023, Novotel – 350 Church Street
Canberra: Thursday 9 March 2023, Novotel – 65 Northbourne Ave
Brisbane: Tuesday 14 March 2023, Hilton Hotel – 190 Elizabeth Street
Melbourne: Thursday 16 March 2023 Marriott Hotel – Corner Exhibition &, Lonsdale Streets
Perth: Tuesday 21 March 2023, Parmelia Hilton Hotel – 14 Mill Street
Adelaide: Thursday 23 March 2023, Hilton Hotel – 233 Victoria Square
Sydney: Tuesday 28 March 2023, Hilton Hotel – 488 George Street
ONLINE: Thursday 30 March 2023

2023 FBT Return Preparation – Full Day Online Live Workshop – 2 dates to choose from

Australian Taxation Office, Employee Declarations & Elections, Employer Elections & Declarations, Employer Obligations, FBT Events, FBT Returns, FBT Software, Training & Seminars
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2023 FBT Return Preparation – Full Day Online Live Workshop – Tuesday 21 February 2023

ONLINE 21 FEBRUARY 2023 REGISTER HERE

2023 FBT Return Preparation – Full Day Online Live Workshop – Thursday 30 March 2023

ONLINE 30 MARCH 2023 REGISTER HERE

Our full day online live FBT Workshops are focussed on Preparing the 2023 FBT Return and Reportable Fringe Benefits amounts. These FBT Workshops are ideal for those who prefer remote learning and / or prefer to access the recording at a later more convenient time.

What can you expect?
A comprehensive update on the Fringe Benefits Tax (FBT) changes for 2023 and 2023 FBT Return Preparation, including:

  1.  Recent law and ATO changes
  2. Electric Vehicles – how to claim exemption and reporting requirements
  3. The $1 billion FBT gap and how the ATO intends to close the FBT gap
  4. Overview including Type 1 and Type 2 benefits and employee contributions
  5. Explaining and analysing all 13 Fringe Benefit categories – how to value and exemptions / concessions available
  6. How to prepare the 2023 FBT Return form
  7. Special rules for Exempt and Rebatable Employers
  8. Full coverage on all benefit categories, exemptions and concessions
  9. Salary Packaging – how it works and the best benefits to package

Online Attendees will be provided with:

• A full set of presentation notes
• A detailed 2023 FBT Technical Manual
• Our 2023 FBT Essentials Checklist
• An attendance certificate for CPD/CPE

ABOUT OUR TRAINERS

Peter Adams – Co-founder of Tight 5 Solutions, incorporating Easy As Tax Finder.
Peter is a captivating public speaker. Having held senior tax positions with KPMG, PWC, BNP-Paribas and Chase Manhattan, Peter regularly talks at professional association events about current tax issues.

Paul Mather – Founder of FBT Salary Packaging Solutions and Co-founder of Tight 5 Solutions, incorporating Easy As Tax Finder.
Paul is an accomplished trainer with over 25 years’ experience. Most recently Paul has over 12 years experience running his own practice FBT Salary Packaging Solutions and prior to that 10 years with EY Sydney specialising in Employment Taxes and Indirect Taxes.

The ATO do not conduct FBT Audits. True or False?

ATO Audits, Australian Taxation Office, Employer Obligations, FBT Returns, Uncategorized
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One of the topics we discussed in the August LET’S TALK FBT & SALARY PACKAGING webinar was ATO focus on Small Business, their Tax Agents, and FBT Audit activity.

Here is a link to the webinar recording: Let’s Talk FBT & Salary Packaging

I wanted to share with you important information to provide “real life” context to the topic. Whilst many people believe that the ATO do not conduct FBT audits – this is a very old myth. The ATO are actively conducting FBT Audits.

Who do the ATO select for an FBT Audit?

Here are some common examples of businesses that are selected for FBT Audit, including:

  1. Businesses with one or more registered motor vehicles
  2. Businesses who are not registered for FBT
  3. Businesses who have not lodged FBT returns
  4. Businesses who have not declared employee contributions in their income tax returns
  5. Businesses who have not remitted GST on employee contributions in their BAS

What information do the ATO require for the FBT Audit?

The ATO information request for an FBT Audit can be extensive. Some of the information requested is often not even directly related to FBT. Examples of the information requested by the ATO for an FBT Audit, includes:

  1. Reason why you have not lodged FBT returns
  2. Financial Statements
  3. Detailed tax reconciliation of accounting profit to taxable income
  4. Depreciation schedule and calculations for motor vehicles
  5. Motor vehicle information including purchase invoices, leasing documentation, service records, logbook records, odometer records including opening and closing odometer records for each FBT year, driver name, address where the motor vehicle is normally garaged, sale date and sale information if relevant
  6. Details of employee contributions including journal entries and general ledger accounts
  7. Details of GST remitted on employee contributions

To download the sample ATO FBT Audit letter, please click here: Sample ATO FBT audit letter

To download the  ATO FBT Checklist, please click here: Sample ATO FBT audit letter