Oh Crap! More Tax.....FBT
As if there aren't already enough taxes in Australia with Income Tax, Goods and Services Tax, Payroll Tax & Land Tax! Who could forget about Fringe Benefits Tax!
Wednesday marks the end of the FBT year.
So what does that mean to business owners?
Do you.......
- have employees (including yourself)?
- provide them with a car?
- provide them with a mobile phone?
- have a work xmas party?
- provide things like a corporate box at a sporting event?
- provide employees with lunch / dinner / alcohol (like Friday afternoon drinks)?
- provide employees with car parking?
- provide employees with loans?
- provide employees with gifts
Basically if you provide your employees with a benefit other than Salary/Wages/Bonuses/Super then you are likely to be providing Fringe Benefits to your employees. While there are some exemptions and thresholds before you have to pay tax on these benefits, you are still required to lodge a Fringe Benefits Tax Return and keep all the necessary records to prove your exemptions.
So what records do I need to keep?
Some examples include maintaining a log book for your vehicles, declarations of private use for Mobiles Phones etc and actual Entertainment Benefit Records (who and how many attended). With this FBT year ending on Wednesday (the 31st March) you will need to ensure you have your Vehicle Odometer Readings recorded. Your FBT Return is due on the 21st May or if your Tax Agent lodges on your behalf the 28th May.
Whilst this FBT year is almost over now provides the optimum time to plan to minimise the FBT for next year. Don't be caught out and have to pay unnecessary Tax! Contact us now!
