FBT Time is Fast Approaching

FBT Time is Fast Approaching

As the end of another Fringe Benefits Tax (FBT) year draws near, employers must stay up-to-date to ensure compliance. Here’s how you can stay on track. 

Understanding FBT:

FBT is a form of tax employers pay on certain benefits they provide to employees in addition to or as part of their regular income or salary. It’s the employer’s responsibility to determine if they have FBT liability, meaning they must calculate and report the taxable value of fringe benefits provided to employees. 

Each year, the benefits subject to FBT could change, underlining the importance of staying informed and ensuring adherence to annual regulatory requirements. 

Simmons Livingstone & Associates can help you understand if you are required to be registered for FBT. 

Evaluate FBT Liability 

Assess whether you have FBT liability based on the fringe benefits provided to your employees from 

April 1st, 2023 to March 31st, 2024. 

This involves reviewing each benefit provided and assessing if it falls within one of the categories under FBT regulations set by the Australian Taxation Office (ATO). 

Simmons Livingstone will be emailing out the 2024 FBT questionnaire to our accounting and taxation clients, along with an accompanying schedule for review and completion. If you are not currently a Simmons Livingstone client for taxation purposes, please get in contact with our office today on 07 5561 8800.

Lodge FBT Return Form

If you have an FBT liability, Simmons Livingstone can complete and lodge an FBT return form on your behalf. The form and any relevant payment, is due by May 21st, 2024.

Non-lodgment Notice 

If you’re registered for FBT but don’t need to lodge an FBT form this year, you must submit an FBT non-lodgement notice to avoid future compliance issues. Contact your Simmons Livingstone advisor to facilitate the submission of this notice. 

Crucial changes to be aware of:

Record Keeping Update

Effective April 1st, 2024, the ATO has introduced changes allowing employers to use existing records instead of travel diaries or employee declarations for certain benefits when calculating and reporting FBT for 2024-2025. 

However, approval by the Commissioner of Taxation is necessary for the use of these alternative records. If you opt to use these alternative records, maintaining the necessary information that supports your FBT returns remains unchanged. We are awaiting further updates and information from the ATO regarding the implementation of this change for the 2025 FBT. 

Electric Vehicle Charging Cost Calculation

The ATO has released a new Practical Compliance Guideline (PGC 2024/2), offering a shortcut method to determine the cost of charging electric vehicles (EVs) at an employee’s home for FBT purposes. 

Employers can choose between the EV home charging rate of 4.2 cents per kilometre or the actual cost. 

To sum up, employers must understand their FBT obligations to navigate each FBT season smoothly. 

For more information speak with your Simmons Livingstone advisor on 1800 618 800 or via email at admin@simmonslivingstone.com.au

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