As if there aren't already enough taxes in Australia with Income Tax, Goods and Services Tax, Payroll Tax and Land Tax it's the time of year when you need to start thinking about Fringe Benefits Tax.
Sunday marks the end of the Fringe Benefits Tax Year. But what does this mean for businesses?
Most business that have employees (including yourself as an employee) will be caught in the Fringe Benefits system. This doesn't mean that you necessarily have tax to pay but you do have certain record keeping requirements as well as the need to have declarations completed for your employees (again including yourself).
If you provide your employees with a benefit other than Salary/Wages/Bonus/Super then are are likely to be providing Fringe Benefits to your employees. What does that mean in practical terms? 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?
If any of the above apply (after ticking that point 1 applies) you will be required to undertake the calculations and keep all of the records including completing declarations for the year.
Don't stress though we will take care of the compliance and paperwork :)
The 1st step is to ensure you record your Odometer Reading in all cars in your business on Sunday. You should also ensure that any employees who drive cars owned or leased by your business also record the Odometer Readings. This is the case even if you drive Work Utes etc.
The next step is to ensure you have all the other documentation ready to determine if any tax applies and what documentation and declarations you require.
P.S for Growthwise clients we will gather the information for Fringe Benefits from your Xero file and send you a note with the other information we require.
