-  3193 3000
If you are a business that employs staff you are required to consider what fringe benefits you have provided to employees during the year ended 31 March 2018.
A fringe benefit is essentially any benefit you provide to your employees that is not part of their wages.
The common types of benefits we see are:
If you provide any of these benefits to employees you will need to consider whether that benefit results in an FBT liability. In some cases, you can use employee contributions to eliminate the FBT liability. We can assist you in making that determination.
You are required to lodge an FBT return if the benefits you provide to employees result in an FBT liability. For the 2018 FBT year this return must be lodged on or before 21 May 2018.
The ATO use data from a variety of sources to identify businesses that may not be meeting their FBT obligations. Penalties and interest may apply where you fail to report fringe benefits provided to employees.
If in doubt you should consider lodging a nil FBT return to reduce this risk.
WHAT ARE THE KEY EXCEPTIONS?
There are a few common exemptions which might apply to you. These are:
In line with the removal of the temporary budget repair levy the FBT rate was reduced from 1 April 2017 to 47%.
NEW GUIDELINES RELEASED
1. Simplified logbook requirements
Last year the new simplified logbook requirements were released for fleets of 20 cars or more.The ATO this year has released further guidelines to assist in the correct application of these rules.Put simply for businesses that have more than 20 vehicles you can now apply an average business use percentage to all vehicles within the fleet. To apply these rules you must have at least 20 ‘eligible’ vehicles which are provided to employees to carry out their work. All employees must be required to keep logbooks and you must hold valid log books for at least 75% of those ‘eligible’ vehicles. If you meet these base requirements you may be able to use that average business use percentage for 5 FBT years.
2. Small Business Entities
The ATO have confirmed that where concessions are available for ‘small business entities’ the new threshold for FBT purposes will now be $10 million turnover in line with the new definition for tax purposes. For example, a small business can provide multiple work-related portable electronic devices of the same kind to an employee during the FBT year.
3. Private Use of Exempt Motor Vehicles
Draft Practical Compliance Guidelines have been released outlining what the ATO will accept as minor, infrequent and irregular in relation to the use of exempt vehicles.The following is a summary of these guidelines;
a) Any diversions for private purposes add no more than two kilometres to the trip (e.g.,dropping children off at school on the way to work);
b) Total private kilometres cannot exceed 750 kilometres for each FBT year; and
c) No single, return journey of a private nature exceeds 200 kilometres.
If you are a businessDEPOT client that employs staff you will shortly receive an information pack which outlines what you need to consider for the 2018 FBT year.
If you have any questions or need any assistance with meeting your FBT obligations please contact us at 07 3193 3000.