Business Accountants
FBT is a tax applied to certain benefits that employers provide to their employees or their employees’ associates (such as family members) in addition to their salary or wages. Employers are responsible for paying FBT on the benefits they offer employees.
Employers are required to pay FBT on the taxable value of fringe benefits, which is usually based on the cost of providing the benefit. The FBT rate is generally the same as the top marginal tax rate for individuals, which may change each year. The FBT year is 1 April – 31 March and at the time of publication the FBT rate is 47%.
A current, future or past employee
A Company Director
Beneficiary of a trust who works in the business
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Some items are exempt from fringe benefits tax if they are primarily used for work purposes. These include:
Portable electronic devices
Computer software
Protective clothing
Briefcases
Tools of trade
Fringe Benefits Tax is a tax paid by employers on certain benefits provided to employees or their associates, in addition to their salary or wages. These benefits can include cars, entertainment, or housing.
Common fringe benefits that attract FBT include company cars, private use of business assets, expense reimbursements, and entertainment such as meals and tickets to events.
Employers are responsible for paying FBT, not employees. The tax is calculated based on the taxable value of the fringe benefits provided during the FBT year, which runs from April 1 to March 31.
FBT is calculated based on the taxable value of the fringe benefits provided. Employers must use either the statutory method or operating cost method for car benefits and other methods for other benefits.
Certain benefits, such as work-related items (e.g., laptops or tools), are exempt from FBT if they meet specific conditions. Additionally, some small businesses and not-for-profits may qualify for FBT concessions.
*Retinue’s (ABN 66 658 618 449) payroll service includes the processing of hours and wages rates provided by you. We do not determine award rates for your employees or provide advice on the correct employment status of your employees. It is your responsibility to ensure that your employees are paid correctly and we recommend obtaining advice from specialised employment relations experts.
Protection is only provided for ATO investigations notified to us during the period which you are a client and relating to any tax returns or lodgements prepared by us. Fines includes any penalties and interest that may result from any errors made by us but does not include any additional tax liability that may result from an amended lodgement.
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