What You Need to Know About 2024 Fringe Benefit Tax

Tue, 09 Apr 2024 01:41:37 GMT

On 31 March 2024 , t he Fringe Ben efits Tax (FBT) year ends. With the ever-increasing budget deficits as a result of COVID-19, the ATO will be reviewing whether all employers who sh ould be paying FBT are paying it, and that they are paying the right amount. The ATO has recently announced that the ‘FBT gap’ is now over $1.3 billion and will be deploying resources for FBT compliance to close this gap.

To help you meet your FBT obligations, we’ve put together a list of essentials every employer needs to know about FBT and review every year, such as:

1. SHOULD YOU BE REGISTERED FOR FBT?

2. SHOULD YOU LODGE AN FBT RETURN EVEN IF NO FBT IS PAYABLE?

3. KEY THINGS YOU MUST DO ON 31 MARCH 2024

Whilst we strongly recommend that you register for FBT and if applicable lodge a Nil FBT Return, if you decide not to there is still key information that we need you to record as at 31 March 2024. We will then rely on this when we complete your 2023 Annual Financial Statements. Here’s a summary of what you need to do:

4. WHAT ITEMS ARE EXEMPT FROM FBT

5. WAYS YOU CAN REDUCE YOUR FBT LIABILITY

Here are some ways in which you can reduce your FBT liability:

replace your fringe benefits with cash salary;
provide benefits that your employees would be entitled to claim as an income tax deduction if they had to pay for the benefits themselves;
look at providing benefits that are exempt from FBT; and
use employee contributions, for example, an employee paying for some of the operating costs of car fringe benefit such as fuel that you don't reimburse them for. You need to be aware that employee contributions will be deemed assessable income to you and subject to GST.

We look forward to helping you meet your FBT obligations and are available anytime to answer any questions you have around reducing your FBT liability or creating effective salary sacrifice arrangements.

integra-business-advisors

What You Need to Know About 2024 Fringe Benefit Tax