By: Sian Dawson and Rex Ting
As the 2024 calendar starts the fun of Fringe Benefits Tax is just on the horizon as the FBT year ends on 31 March 2024.
Just as a recap FBT is a tax levied on non-cash benefits provided by employers to their employees in addition to their regular salary or wages.
Changes for 2024:
Check out the ATO Website for various rates and changes, much of it has stayed the same from the 2024 year.
Common examples of FBT provided by our clients
- Providing a company car for an employee’s private use
- Paying for car parking in a commercial car park within 1km of the workplace
- Providing entertainment, giving vouchers and coupons, sending gift cards
- Paying for employees’ personal travel
- Allowing employees to reside in the company’s properties
- Paying for employee expenses unrelated to business
- Buying coffee in staff meetings etc
What do I do if Fringe benefits have been provided?
Step 1: contact EASE. It is recommended to always complete an FBT analysis and lodge an FBT return to the ATO, even where the liability equates to 0. By lodging an annual return you are limiting the period the ATO can go back and complete an audit that could retrospectively deem FBT payable.
Reminder: Electronic vehicles (including Hybrids) currently have an FBT exemption
This exemption implies that eligible EVs will not be subject to FBT, allowing companies to purchase EVs that can be used by employees for both personal and business purposes, while the cost incurred is fully deductible by the company.
To be eligible for this FBT exemption, the vehicle must be a battery electric vehicle, hydrogen fuel cell electric vehicle, or plug-in hybrid electric vehicle (which will expire on 1 April 2025).
It must also have a payload of less than 1000kg and a capacity for carrying less than nine passengers.
The original purchase value (in the hands of the first owner) must be less than $84,916 and must be first used by the employee after 1 July 2022.
Even a second-hand EV that was originally first used by the first owner after 1 July 2022 is still eligible.
If you need any further help and guidance with FBT our team is just a message away. Contact us and we will be happy to help!
If you have lodged an FBT return with us previously we will be in touch in early April to discuss the next steps to complete your 2024 FBT compliance.