Adelaide accountant Kym Nitschke writes about how the Fringe Benefits Tax may apply to you and your small business in Australia.
What is the Fringe Benefits Tax (FBT)?
FBT is a tax paid on certain benefits that an employer make to their employees or their employees’ associates in place of or in addition to their salary or wages.
Who may a FBT apply to?
Your business may be providing fringe benefits to your employees or their associates (eg family members). This includes current, former and future employees and directors running their business through a company or trust.
You have to register for pay FBT on:
- Employees using a business-owned car for private use. In this case, you might have to pay FBT on the taxable value of the car
- Employee benefits such as loans, accommodation or entertainment expenses.
Some work-related benefits such as laptops, computers and mobile phones primarily used for work are exempt.
You might be able to claim a tax deduction for the cost of providing fringe benefits to your employees and also for the Fringe Benefits Tax you pay to the ATO.
Important dates:
The FBT year runs from 1 April to 31 March. The FBT rate for the following years are:
Ending 31 March 2016 and 31 March 2017: 49%
Ending 31 March 2018: 47%
The FBT can have a significant impact on business owners and employees. To claim any potential benefits, and avoid any ramifications, it is important to seek the advice of an experienced tax accountant.
Nitschke Nancarrow is a specialist tax advisory firm. Contact us for a free, no obligation discussion about your matter.
– Kym Nitschke, Managing Partner
