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I recently hosted a webinar “Let’s Talk FBT with the ATO” – in this webinar the ATO provided insight to the their approach to FBT, ranging from helping employers through to FBT audits and non-compliance.
If your new to FBT (or a bit stale on the latest FBT rules) or not sure about your own FBT obligations or your clients FBT obligations, I highly recommend you invest the time (90 minutes) to watch this webinar recording – it’s free. (Link to recording is below.)
To a large extent the content covered was based on webinar registrants own FBT issues and challenges. Further, regular Live Q and A was provided throughout the webinar for the highly engaged audience.

The ATO discussed:
1. FBT Pillars – the 4 steps to getting FBT right
2. FBT and our changing environment
3. The role of the ATO
4. ATO resources
5. The use of third party information and data matching to target FBT non-compliance
6. Guidance on the distinction between meal entertainment and sustenance

The ATO highlighted common mistakes employers make in relation to:
1. Employee Contributions
2. Consolidated FBT returns
3. Reportable Fringe Benefits amounts
4. Passenger cars and misunderstandings around private use
5. Utes and other non-passenger vehicles – myths and defining limited private use

The ATO also provided examples of recent FBT audit activity, including:
1. Invalid Logbooks and private use;
2. Ineffective Employee Contributions by way of journal entry
3. Incorrectly claiming exemption on Dual Cab Utes;
4. Capping the FBT base value at the luxury car limit

Finally, we discussed FBT Registration – when registration is required and why registration is important – even when you may think registration is not required.
A big thank you to Jennifer Madigan and her team for an insightful and well received FBT presentation.

Please copy the following link to your browser to access the recording:  https://attendee.gotowebinar.com/recording/4232469289267235247


2023 FBT Training

We will be offering a range of training options in early 2023, to assist FBT Return preparers and reviewers with preparing the 2023 FBT Returns and reporting on Employee Payment Summary.

Please click here for more information. https://fbtsolutions.com.au/fbt-return-preparation-full-day-workshops/

 

 


Electric Car FBT exemption awaiting Royal Assent

The exemption will cover zero or low emission vehicles, with values below the luxury car tax threshold for fuel efficient cars (currently $84,916), being:

  • Battery electric vehicles
  • Hydrogen fuel cell electric vehicles
  • Plug-in hybrid electric vehicles

Second hand cars can qualify, but only if their first retail sale was on 1 July 2022 or later.

Salary packaged cars qualify for the exemption.

The exemption does not cover vehicles other than ‘cars’ as defined in the FBT law. Any vehicles designed to carry one tonne or more, or nine passengers or more, will not qualify for this particular exemption. (however the existing residual benefit exemption may apply).

The exemption applies retrospectively from 1 July 2022, to cars first held and used by a person on 1 July 2022 or later. Cars ordered prior to 1 July 2022 will qualify if they were not delivered until 1 July 2022 or later.

Plug-in hybrid electric vehicles will no longer be exempt from FBT after 1 April 2025. Pre-existing arrangements with such cars can continue as FBT exempt until the end of the particular arrangement.

Private use of these cars will still result in reportable fringe benefits for employees, including for employees of not-for-profit employers. Therefore employers will still need to perform FBT related calculations for these vehicles.