{"id":11840,"date":"2018-10-09T15:43:18","date_gmt":"2018-10-09T04:43:18","guid":{"rendered":"https:\/\/adviceco.stackedsite.com\/2019\/10\/09\/2012-march_article-3-fringe-benefits-tax-am-i-liable\/"},"modified":"2024-01-19T09:48:06","modified_gmt":"2024-01-18T22:48:06","slug":"2012-march_article-3-fringe-benefits-tax-am-i-liable","status":"publish","type":"post","link":"https:\/\/adviceco.com.au\/2012-march_article-3-fringe-benefits-tax-am-i-liable\/","title":{"rendered":"Fringe Benefits Tax – Am I Liable?"},"content":{"rendered":"
However, employers can generally claim an income tax deduction for the cost of providing FBT and for the FBT they pay.<\/span> <\/strong>If you answer <\/span>yes <\/strong>to any of the following questions you may be providing a fringe benefit, and be liable for FBT:<\/span> – Have you allowed an employee to use a work car for private purposes?<\/p>\n – Have you given your employee a cheap loan?<\/p>\n – Have you provided an employee with a house or other accomodation?<\/p>\n – Have you paid for an expense incurred by an employee, such as school fees?<\/p>\n – Have you provided your employee with entertainment through food, drink or recreation?<\/p>\n \nWhat do I need to do if I am providing a Fringe Benefit? – Keep the neces<\/strong>sary FBT records – <\/strong>the FBT law requires you to keep records in relation to the fringe benefits you provide.<\/span><\/p>\n – Re<\/strong>gister for FBT – <\/strong>we recommend you register once you establish you have to pay FBT.<\/span><\/p>\n – Report fringe benefits <\/strong>on your employees’ payment summaries and your FBT return.<\/span><\/p>\n Benefits that are subject to Fringe Benefits Tax can include:<\/span><\/p>\n – – Rights<\/p>\n – Priveleges<\/p>\n – Services<\/p>\n \nFringe Benefits Tax is split into various categories and specific valuation rules apply to each category. This can often make FBT very difficult to calculate for many businesses.<\/span><\/p>\n However, it is worth considering which method will be best for your current business situation to help minimise the FBT liability owed.<\/span><\/p>\n
\nFailure to lodge or declare any FBT amounts owed to the Australian Tax Office can incur harsh penalties and are subject to fines and interest charges.<\/span>
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\nAre you providing Fringe Benefits?<\/p>\n
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\n – Calculate how <\/strong>much FBT you have to pay – <\/strong>you must self-assess your own FBT liability each FBT year.<\/span><\/p>\n
\nWhat Benefits are subject to FBT?<\/span><\/p>\n