We have a number of solutions to assist you in meeting your annual FBT compliance obligations.
FBT is a complex tax with return preparation being time-consuming and requiring a high level of detailed analysis. We provide a range of FBT related services to help reduce the compliance burden for our clients. Please feel free to contact us for further
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.
Key areas to consider when managing FBT
What are your 2019 / 2020 New Years FBT resolutions? (maybe you don’t have any 🙂 yet)
Here’s 10 New Years FBT resolutions that may resonate or get you thinking:
1. Develop fringe benefit policies, rewrite or update existing fringe benefit policies
2. Plan to prepare the 2020 FBT return more effectively and efficiently
3. Get some FBT Software
4. Attend FBT training or run a FBT training session in-house
5. Implement a new employee expense process
6. Restructure the chart of accounts
7. Transition valuing entertainment from 50/50 to actual method
8. Introduce, broaden or enhance your Salary Packaging offering
9. Assess liability to FBT on car parking?
10. Follow up employee’s to submit their manual car logbooks or introduce GPS technology