What are fringe benefits?
- 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
The year 2023 FBT due date
The 2023 FBT year ended on 31 March 2023. You’ll need to lodge your FBT return and pay any outstanding liability by 22 May 2023 to avoid interest and penalties. If you’re submitting your tax return electronically through a tax practitioner, the deadline for lodging and paying is on 26 June 2023.
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.