FBT Services

FBT is a complex tax. Annual FBT Return preparation is often a time-consuming task that requires  detailed analysis of benefits and related transactions. We provide a range of FBT Return services and FBT related services to help reduce the compliance burden, improve accuracy and legally minimise FBT for our clients. Please feel free to contact us for further information.

FBT issues on the ATO radar

If you’re an employer, it pays to know what the ATO are looking out for and benefits you need to report so you can avoid making costly mistakes. In this year’s updated list of ‘What attracts ATO attention’, there are six items that specifically relate to fringe benefits tax (FBT).

These items are:

• failing to report motor vehicle fringe benefits, incorrectly applying exemptions for vehicles or incorrectly claiming reductions for these benefits
• mismatches between the amount reported as an employee contribution on an FBT return compared to the income amounts on an employer’s tax return
• claiming entertainment expenses as a deduction but not correctly reporting them as a fringe benefit, or incorrectly classifying entertainment expenses as sponsorship or advertising
• incorrectly calculating car parking fringe benefits due to:
  • significantly discounting market valuations
  • using non-commercial parking rates
  • not being supported by adequate evidence
• not reporting fringe benefits on business assets that are provided for the personal enjoyment of employees or associates
• not lodging FBT returns (or lodging them late) to delay or avoid payment of tax.

Being mindful of these FBT matters will help your business to stay off the ATO FBT radar and stay on track with your obligations.