Fringe Benefits Tax Time Approaching
If you provide certain benefits to your employees including their partners or family members, you may be liable to pay Fringe Benefits Tax (FBT). The FBT year runs from 1 April to 31 March so the time when you will need to review your position, and decide if any action is needed, is fast approaching.
The most common fringe benefit is private use of a motor vehicle but there are many other items that are captured by these rules. If you answer "yes" to any of the following questions you may be liable for FBT;
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Do your employees take cars home and garage them overnight, even if only for security reasons?
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Do your employees use cars or other vehicles the business owns for private use?
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Do you have a salary package arrangement with any of your employees?
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Have you paid or reimbursed any employees' expenses?
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Do you provide entertainment, such as food, drink or recreation to your employees?
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Have you given property, such as electrical goods, to your employees either free or at a discount?
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Do you provide any employees with a house or unit of accommodation?
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Do you provide loans at reduced interest rates to any employees?
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Have you released any employee from a debt they owed the business?
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Do you provide any employees with living-away-from-home allowances?
The good news is that not all benefits are taxed such as certain work related items that you may provide to staff or minor benefits valued at less than $300.
FBT is a complex area so the best way to be sure that you are not liable for this tax is to contact us with any questions you may have and ask us to review your position to determine whether it is applicable to you.
