Employers sometimes provide benefits to employees in addition to their normal salary or wages.
Examples can include:
vehicles
entertainment
payment or reimbursement of certain expenses
parking
loans
other non-cash benefits.
Depending on the circumstances, these arrangements may create Fringe Benefits Tax obligations.
When Might You Need to Look at FBT?
You may need to consider FBT if your business:
provides company vehicles to employees
pays personal expenses for employees
provides entertainment
offers benefits as part of remuneration packages
has employee loan arrangements
isn't sure whether existing benefits are being treated correctly.
How SKC Accounting Can Help
Depending on the engagement, assistance may include:
reviewing employee benefits
identifying potential FBT issues
company vehicle reviews
entertainment-related reviews
record-keeping guidance
considering relevant exemptions or concessions
preparing FBT information or returns where applicable
assisting with ATO correspondence.
Common Questions
Can't find your question? Email us.
Does every employer have FBT?
No. Whether FBT applies depends on the types of benefits provided and the circumstances.
Is FBT the same as income tax?
No. FBT is a separate tax applying to certain benefits provided by employers.
Should I look at FBT before providing a new employee benefit?
Where possible, yes. Understanding the potential tax treatment beforehand can help avoid surprises.
Businesses Dealing With FBT Often Also Need
Continue Learning
What Is Fringe Benefits Tax — and When Does a Small Business Need to Think About It?
Meals, Coffee, Entertainment and Client Functions — What Can My Business Actually Claim?
Can I Claim My Car or Ute Expenses Through My Business?
Should I Buy a Vehicle Through My Business or Personally?
Service Delivery Disclosure
SKC Accounting Financial & Advisory Services Pty Ltd trading as SKC Accounting is a licensee of Platinum Accounting Australia Pty Ltd (Platinum). Platinum is a Registered Tax Agent (Tax Agent No. 24683431). Tax agent services, including the preparation, review and lodgement of tax returns, and BAS/GST services requiring registered-agent authority, are provided through Platinum under the applicable engagement arrangements. For more information, please visit Platinum Accounting Australia.
Let’s Talk About Your Business
A useful first conversation starts with what your business does, what is creating pressure and what you would like to improve. Book a Complimentary Initial Consultation to discuss the support that may suit your circumstances.