As the FBT (Fringe Benefits Tax) year ends on 31 March 2023, it’s important for business owners to start thinking about their FBT obligations. FBT is a tax employers pay on certain benefits they provide to their employees or their employees’ families, in addition to their salary or wages. The FBT year runs from 1 April to 31 March each year, and the deadline for lodgement of the FBT return is 25 June.
Here are a few common scenarios that small business owners may face when it comes to FBT:
1. Providing company cars to employees:
If a small business provides a company car to an employee, it may be subject to FBT. This is because the use of the car is considered a fringe benefit, and the employer must pay FBT on the value of the benefit.
2. Offering entertainment benefits:
Entertainment benefits, such as tickets to concerts or sporting events, can also be subject to FBT. For example, if a small business takes its employees out for a team-building event that includes entertainment, it may be considered a fringe benefit and subject to FBT.
3. Providing non-cash benefits:
Non-cash benefits, such as gift vouchers, can also be subject to FBT. For example, if a small business gives its employees gift vouchers for Christmas, it may be considered a fringe benefit and subject to FBT.
4. Providing low-interest loans:
If a small business provides a low-interest loan to an employee, it may be subject to FBT. This is because the loan is considered a fringe benefit, and the employer must pay FBT on the value of the benefit.
It’s important for business owners to keep accurate records of any benefits they provide to their employees, as they may be subject to FBT. Failing to comply with FBT obligations can result in penalties and interest charges.
To make sure you’re meeting your FBT obligations, please get in touch with us via phone on 9266 0000 or send a query through to admin@connollysbs.com.au.
