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Time To Review If You Provide Fringe Benefits
Alan Law • Mar 16, 2021
It's time to review your fringe benefits for the year.
The fringe benefits tax (FBT) year ends on 31 March. That means it's time to review benefits you've provided to your employees for the last 12 months and work out which benefits attract FBT.
You need to lodge your FBT return by 21 May 2021.
Examples of fringe benefits include:
• private use of work cars
• entertainment (e.g. concert tickets)
• reimbursement of employees' expenses (e.g. school fees)
• salary sacrifice arrangements
Over past year there have been many changes and restrictions due to COVID. To adapt, you may have provided your employees different benefits to those you usually provide, and these may be exempt from FBT.
Generally, you do not need to pay FBT for:
• items provided to employees to enable them to work from home (e.g. laptop or portable device)
• emergency accommodation, food and transport
• emergency health care
The minor benefits exemption may also apply for minor, infrequent and irregular benefits under $300.
Contact ACP Accountants, your Sydney business accountants today.
From 1 April, it's a new fringe benefits tax (FBT) year. If you're an employer and have provided certain benefits to your staff in addition to their salary and wages, it's important to understand how FBT works and what is considered a fringe benefit. Perks that could attract FBT include providing employees with a work car (including dual cab Utes) for private purposes, gym memberships, or tickets to an event or show. If you provided these benefits to your staff, make sure you know how to lodge and pay the FBT. Here's 4 easy steps to help you get your FBT reporting right the first time: Identify the types of fringe benefits you provide Determine the taxable value of each fringe benefit Lodge an FBT return and pay by 21 May (for self-preparers). If your tax professional lodges electronically on your behalf, you have until 25 June Keep good records to support your calculations and FBT position If you don't have an FBT liability for the 2023–24 FBT year and you're registered for FBT, you will need to lodge a completed FBT non-lodgment advice form. If this is your first time lodging through a tax professional, make sure you contact them before 21 May to be added to their FBT client list. This ensures you’re eligible for the June lodgment and payment date. Contact us today – your Sydney small business accountants, or simply call us on 02 80467621.
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The Federal Government recently announced the increases in the standard concessional and non-concessional contributions caps. From 1 July 2024, the standard concessional contribution cap will increase from $27,500 to $30,000. From 1 July 2024, the non-concessional contribution cap, which is expressed as 4 times the standard concessional contribution cap, will also increase from $110,000 to $120,000. This also means that the maximum available, under the non-concessional contribution bring-forward provisions, will increase from $330,000 to $360,000. From 1 July 2024, the Total Superannuation Balance Thresholds used to determine the maximum amount of bring-forward non-concessional contributions available to an individual will also be adjusted. Running your own business and have no time to deal with tax issues? Contact ACP Accountants today on 02 8046 7621, or email us at info@acpaccountants.net.au, and we will take care of your taxation matters as they were our own.
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From 1 April, it's a new fringe benefits tax (FBT) year. If you're an employer and have provided certain benefits to your staff in addition to their salary and wages, it's important to understand how FBT works and what is considered a fringe benefit. Perks that could attract FBT include providing employees with a work car (including dual cab Utes) for private purposes, gym memberships, or tickets to an event or show. If you provided these benefits to your staff, make sure you know how to lodge and pay the FBT. Here's 4 easy steps to help you get your FBT reporting right the first time: Identify the types of fringe benefits you provide Determine the taxable value of each fringe benefit Lodge an FBT return and pay by 21 May (for self-preparers). If your tax professional lodges electronically on your behalf, you have until 25 June Keep good records to support your calculations and FBT position If you don't have an FBT liability for the 2023–24 FBT year and you're registered for FBT, you will need to lodge a completed FBT non-lodgment advice form. If this is your first time lodging through a tax professional, make sure you contact them before 21 May to be added to their FBT client list. This ensures you’re eligible for the June lodgment and payment date. Contact us today – your Sydney small business accountants, or simply call us on 02 80467621.
The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.