A Quick Guide to Fringe Benefits Tax
What are fringe benefits?
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- Private use of a company car
- Health insurance or gym memberships
- Entertainment expenses, such as tickets to sporting events or concerts
- Housing or rent assistance
- Education or training expenses
- Loans at reduced interest rates
- Right to Property – shares, bonds
- Childcare costs and school fees
What is Fringe Benefits Tax (FBT)?
The FBT rate is currently set at 47%, which means that for every $1 of fringe benefit provided, the employer must pay an additional 47 cents in FBT. However, some exemptions and concessions may apply.
Why do employers need to pay FBT?
Exemptions and concessions on FBT
FBT due date
It’s essential for employers to annually assess whether they have an FBT liability based on the fringe benefits provided to their employees or their associates during the previous FBT year, which runs from 1 April to 31 March. If you identify an FBT liability, it’s crucial to lodge an FBT return and pay the required amount by the due date of 21 May each year.
If you need help navigating the world of Fringe Benefits Tax, our team at MKG Partners is here to help. We specialise in tax planning and compliance for businesses of all sizes, and we have the knowledge and expertise to ensure that you’re meeting all of your FBT obligations. Contact us today to learn more about our services and how we can help you stay on top of your taxes.