REMINDER - Don't forget to record your odometer readings on the 31st March 2010
The end of the current FBT year is fast approaching. All employers should be checking their records to see what benefits have been provided to employees. A Fringe Benefit Tax is a tax paid on certain benefits you provide your employees and their associates. The FBT year is from 1st April to 31st March each year.
If you answer yes to any of the following questions, you may have to pay FBT:
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Do your employees take cars home and garage them overnight, even if only for security reasons?
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Do your employees use cars or other vehicles the business owns for private use?
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Do you have a salary package arrangement with any of your employees?
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Have you paid or reimbursed any employees' expenses?
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Do you provide entertainment, such as food, drink or recreation to your employees?
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Have you given property, such as electrical goods, to your employees either free or at a discount?
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Do you provide any employees with a house or unit of accommodation?
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Do you provide loans at reduced interest rates to any employees?
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Have you released any employee from a debt they owed the business?
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Do you provide any employees with living-away-from-home allowances?
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Are you a tax-exempt organisation that has provided food, drink or accommodation to employees?
There are certain situations where the benefit provided is an Exempt Benefit. These may include:
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Mobile phones.
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A laptop, notebook or similar computer.
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Protective clothing provided to an employee.
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Items such as computer software or portable electronic devices.
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Providing a briefcase or tools of trade.
Warning: To claim the exemption these items must be used primarily for work related use
Car Fringe Benefits statutory formula rates:
|
Total kilometers travelled during the year |
Statutory % |
|
Less than 15,000 |
26% |
|
15,000 to 24,000 |
20% |
|
25,000 to 40,000 |
11% |
|
Over 40,000 |
7% |
If you think you may be liable for FBT please contact our office on (02) 9899 7566 to discuss. Further information can be obtained from the ATO website at http://www.ato.gov.au/businesses
