2024 Fringe Benefits Tax: Part 3

2024 Fringe Benefits Tax: Part 3

The Fringe Benefits Tax (FBT) year ends on 31 March. Last week, we outlined WFH arrangements and contractors/employees.

  • Part 1: hotspots + FBT exemption for electric cars + working with the exemption.
  • Part 2: WFH arrangement + contractor or employee.
  • Part 3: not lodging FBT returns + housekeeping.

Part 3: not lodging FBT returns + housekeeping.

Not lodging FBT returns

The ATO is concerned that some employers are not lodging FBT returns when required to. If your business employs staff (even closely held staff such as family members), and is not registered for FBT, it is essential to ensure that the position is reviewed to check whether the business could potentially have an FBT liability.

If the business provides cars, car spaces, reimburses private (not business) expenses, provides entertainment (food and drink), employee discounts etc., then you are likely to be providing at least some fringe benefits.

There is a list of benefits that are considered exempt from FBT, such as portable electronic devices like laptops, protective clothing, tools of trade etc. If your business only provides these exempt items, or items that are infrequent and valued under $300, then you are unlikely to have to worry about FBT.

Make sure you have reviewed the FBT client questionnaire we sent you!

Housekeeping

It can be difficult to ensure the required records are maintained in relation to fringe benefits. If your business has cars and you need to record odometer readings at the first and last days of the FBT year (31 March and 1 April), remember to have your team take a photo on their phone and email it through to a central contact person – it will save running around to every car, or missing records where employees forget.

If you would like to discuss, please contact our office.