Author: Minna Zhu, Manager Tax & Business Services Date Posted: 28 April 2015
If you employ staff in your business you need to know about Fringe Benefit Tax. FBT is applied to most non-cash benefits employers provide to their employees and associates. For most businesses FBT applies to private use of cars, car parking, helping an employee with housing, providing an employee with a loan, paying private expenses like telephone or travel, providing meals or buying gifts for employees.
If FBT is applicable to your business, Consolid8's tax team can provide practical solutions to help prepare your FBT Return and legitimately reduce your FBT liability.
FBT Year End
The 2015 Fringe Benefits Tax (FBT) year ended on 31 March 2015.
Does FBT apply to me?
We recently sent our business clients a FBT Questionnaire to help determine if FBT is applicable to your business. All employers that provided fringe benefits to their employees (including directors) or to associates of employees (typically family members) at any time during 1 April 2014 to 31 March 2015 are required to lodge FBT returns.
When is tax due?
Payment for any FBT is due by 28 May 2015.
Failure to disclose fringe benefits can result in heavy penalties, and payment of prior years' outstanding taxes. This is especially important now with the self-assessment system and the ever-increasing possibility of a tax audit. Having to find the cash to pay the late penalties (on average $1,100 per late return), plus ATO interest charges plus all prior FBT bills can be very stressful. Having to fund these charges is likely to have a significant impact on your business cashflow.
How can Consolid8 help?
At Consolid8, we are determined to provide commercial, real world solutions and deliver tax savings to you. We can provide practical solutions to help you legitimately reduce your FBT liabilities. For example looking for ways to provide exempt fringe benefits, provide fringe benefits that meet the "otherwise deductible rule", make employee contributions, replace fringe benefits with cash salary or pay private expenses from private funds.
Call us today Don't hesitate to give your accountant a call to discuss FBT implication and how we can help you to manage them.