SKC ACCOUNTING · AUSTRALIA

Fringe Benefits Tax (FBT)

Providing Benefits to Employees Can Sometimes Create Tax Obligations

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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.

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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.

USEFUL ANSWERS

Common Questions

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

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