I recently hosted a webinar “Let’s Talk FBT with the ATO” – in this webinar the ATO provided insight to their approach to FBT, ranging from helping employers through to common mistakes and misunderstandings.
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.)
A big thank you to Jennifer Madigan and her team from the ATO 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/6113213623244542722
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.
