Yes that's right.....it's Fringe Benefits Tax Time.....again. Because we don't have enough complications in the Australian Taxation System why not throw in FBT! Thursday marks the end of the FBT Year.
So what does that mean to business owners? For most businesses that have Employees you will be caught in the Fringe Benefits Tax System.
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. Now just to make things interesting some benefits you provide employees will attract an actual tax whilst others will be exempt. The bad news.....even if you don't have to actually pay any tax on these benefits you still have to prepare that dreaded return & keep all the necessary records to prove your exemptions.
So what records do I have to keep?
Some examples include maintaining a log book for your vehicles, declarations of private use for Mobile Phones etc and actual Entertainment Benefit Records (who and how many attended any dinners, lunches, events etc).
The FBT Year ends on Thursday so you need to ensure you write down the Odometer Readings for your Motor Vehicles. Your actual FBT return is due on the 21st May so it will be important to have your files reconciled and sent to us in the next couple of weeks so your return can be prepared. It's also a great time to look at minimising any exposure to FBT in the future.
Still not sure what is covered under FBT? Click Here :
