Fringe Benefits Tax Alert

The Fringe Benefits Tax (FBT) year ends on 31 March 2021 and we have summarised the key FBT hot spots and record keeping matters your business needs to be aware of.
Does your business lodge an FBT Return?
The ATO is concerned that some businesses that employ staff (even closely held staff such as family members) are not disclosing and accounting for all of their FBT liabilities.

It’s essential to review your position and be certain that you do not have an FBT liability. If your business provides cars, car spaces, staff gifts and vouchers, reimburses private (not business) expenses, provides entertainment (food and drink), employee discounts etc., then it’s likely you are providing a fringe benefit.

For those businesses that have previously lodged an FBT Return, the FMA team are busy tailoring questionnaires and documentation to help you meet your 2021 FBT obligations. The ATO has set the 25th of June as the due date for all 2021 FBT returns lodged through FMA.

If you have not previously lodged an FBT return and would like a copy of our FBT questionnaire to help understand your FBT obligations, please get in touch.
If you provide car fringe benefits under the operating cost method

Employers need to ensure they have a copy of an employee’s valid log book for the period 1 April 2020 to 31 March 2021. Employees must also take an odometer reading at 31 March 2021 and provide this to their employer if they wish to use the operating cost method when calculating any FBT liability.

We suggest employees take a photo on their phone and email it through to a central contact person in your organisation. 

FBT Rate

The FBT rate remains unchanged since 1 April 2017 and remains current until 31 March 2022.
FBT year FBT Rate Type 1 Gross Up rate Type 2 Gross Up rate
1 April 2020 to
31 March 2021
47% 2.0802 1.8868
Want more detail?

Click through below for our special 5 page FBT update that includes:
  • COVID -19 and the potential FBT traps
  • Motor Vehicle problems areas
  • ATO 'red flags'
  • Car parking now under scrutiny
As always, please get in touch with our office to discuss how this may impact your unique circumstances.
Read more here
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Important: This is not advice. Clients should not act solely on the basis of the material contained in this Bulletin. Items herein are general comments only and do not constitute advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. The Bulletin is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.

Copyright © 2021 FMA Partners Pty Ltd, All rights reserved.

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