How TMS Financials Can Assist with Fringe Benefits Tax (FBT)
Evaluating Your FBT Obligations
Strategic Advice on Managing and Reporting FBT
Compliance and Lodgement Support
We will assist you in keeping accurate records of benefits provided and their respective taxable values. Our support extends to preparing and lodging your FBT returns on time via the ATO Business Portal, ensuring that all reportable fringe benefits are accurately documented to avoid penalties and discrepancies.
Lodge your FBT with TMS Financials
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Fringe Benefits Tax (FBT) benefits for your business
Consider the following potential fringe benefits you can provide to your employees:
- Offering car parking facilities
- Covering the cost of an employee’s gym membership
- Providing entertainment through complimentary tickets to events like concerts
- Reimbursing expenses such as school fees incurred by your employees
- Offering discounted loans to employees
- Providing benefits through a salary sacrifice arrangement
As an employer, it’s crucial to assess your FBT obligations for the FBT year, which runs from 1 April to 31 March. If you’re liable for FBT, you’re required to submit an FBT declaration and settle any owed amounts promptly. Understanding and managing FBT can contribute positively to your business’s financial health and employee satisfaction.
Do I need to lodge an FBT return?
Some benefits, like work tools or small benefits under $300, don’t need an FBT return. Getting advice from a tax expert can help make sure you comply with the ATO’s rules around Fringe Benefits Tax.
Lodge your FBT
Penalties for late-lodgement and non-lodgement of FBT
Failure to lodge on time (FTL) penalty
If you’re late lodging your FBT return, you could be hit with a penalty of $222 for every 28-day period that passes, maxing out at $1,110 per return.
Administrative penalties
General Interest Charge (GIC)
Prosecution
In extreme cases, where there’s serious non-compliance or fraud involved, criminal charges could be brought against the business owner or the person responsible.
Disclaimer
Offering fringe benefits to your employees
Key tax considerations include:
Income tax
When you provide benefits, like work vehicles or health plans to your team, these are often seen as taxable income for them and need to be included in their tax returns. The value of these benefits gets added to their other income and is taxed according to their tax rate. However, some benefits, like small benefits under a certain value or specific exempt benefits, might not be taxed this way.
Reportable fringe benefits
Grossing-up
Income tax
When you provide benefits, like work vehicles or health plans to your team, these are often seen as taxable income for them and need to be included in their tax returns. The value of these benefits gets added to their other income and is taxed according to their tax rate. However, some benefits, like small benefits under a certain value or specific exempt benefits, might not be taxed this way.
Exempt benefits
Salary sacrifice arrangements
Offering fringe benefits
Benefits for an employee's associate
Contact us today for a consultation.
Contact us today to learn more about how our accounting services can benefit your business. We look forward to hearing from you and helping you achieve financial success!