Fringe Benefits Tax 2016

The 2016 Fringe Benefits Tax (FBT) year end of 31 March 2016 is fast approaching.

It is time for businesses to start reviewing their position to identify if they need to submit a FBT return.

What is FBT?

FBT is a tax payable by employers on non-cash benefits provided to employees.  This is essentially any benefit provided to employees beyond their normal salary and superannuation.

Common examples of Fringe Benefits are:

  • Private use of business vehicles;
  • Car parking;
  • Provision of entertainment;
  • Payment/reimbursement of private expenses;
  • Provision of loans;
  • Provision of goods/services from the business; and
  • Living Away From Home Allowances (LAFHA).

Where the employer provides Fringe Benefits to employees, those benefits must be valued in accordance with the legislation and the employer then pays FBT at the rate of 49%.

There are a number of exemptions & concessions that can be accessed by employers to reduce or eliminate the FBT liability.  For example, low value benefits (< $300) may be eligible for the Minor Benefits exemption.

There are also specific rules, concessions & exemptions that apply to employers operating in the not-for-profit sector.

Accountants Ballarat & Bookkeepers Ballarat

Our goal is to empower you to become a better, more finance-focused and well-rounded entrepreneur. Contact us at info@skyacc.com.au or 1300 328 855

What should I be doing?

If you have provided any non-cash benefits to employees during the last twelve months, you should seek advice on how the FBT rules apply to your business.

You will also require guidance on the record keeping requirements to be satisfied.

For those businesses that offer salary packaging, it is also a time to review those packages to ensure that they are correctly set for the 2017 FBT year.

If you require assistance to review the FBT position of your business, or advice on how to achieve the best outcomes, please do not hesitate to contact us.

You can click here to speak to a businessaccounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

Sky Accountants, 24 March 2016

Ballarat Accountants | Business Accountants Ballarat | Ballarat Bookkeepers | Ballarat Mortgage Broker | Ballarat Financial Planners | Ballarat Accounting Firms | Ballarat Bookkeeping Firms

Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Melbourne Accountants | Business Accountants Melbourne | Melbourne Bookkeepers | Melbourne Mortgage Brokers | Melbourne Financial Planners | Melbourne Accounting Firms | Melbourne Bookkeeping Firms

Sunbury Accountants | Business Accountants Sunbury | Sunbury Bookkeepers | Sunbury Mortgage Brokers | Sunbury Financial Planners | Sunbury Accounting Firms | Sunbury Bookkeeping Firms

Gisborne Accountants | Business Accountants Gisborne | Gisborne Bookkeepers | Gisborne Mortgage Brokers | Gisborne Financial Planners | Gisborne Accounting Firms | Gisborne Bookkeeping Firms

Phone: 03 97444522
Sunbury Office Address: Suite 13, 33-35 Macedon Street, Sunbury, Victoria 3429, Australia
Gisborne Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437

Like this? Share it...

Related Reading

Leave a Reply

Your email address will not be published. Required fields are marked *

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.