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Fringe Benefits Tax (FBT) - Don't Get Crash Tackled

Fringe Benefits Tax (FBT) is a generally misunderstood tax so don't drop the ball on what you might be liable to pay.

The purpose of FBT is to make sure that any benefits "employee's" receive don't escape the tax net. This means that benefits paid to staff (and owners of businesses alike) are levied FBT to effectively put the employee in the same position as if they had paid for the benefit out of their own tax paid income. The difference is that the FBT is generally paid by the employer although in some cases the employer is reimbursed by the employee for the FBT cost.

A taxable benefit can also include benefits provided to staff but provided by third parties.

For example, maybe your business has just done some work for Manu Vatuvei and he gives one of your staff members free tickets to go and see the mighty Warriors. As an employer, you may find you have an FBT liability on the value of those tickets even though in some cases you may not even know about them.

For some good information on these "Left Field" benefits please have a look at our March Newsletter.

The FBT year runs from 1 April to 31 March, so now is a good time to consider how the FBT rules may affect you. Where an employer or other party provides a non-cash benefit (ie. use of a motor vehicle, free tickets to the footy, a low interest loan etc) to an employee (including an owner of the business who is a director) FBT applies to the value of that benefit at the FBT rate of 49%.

If you, or anybody else, provide benefits to your staff or director(s) or provide other fringe benefits then FBT may apply to you and you should give us a call on (07) 5439 1600 to discuss your possible liability. Or CLICK HERE to make an appointment with one of our qualified advisors.

 

FBT Exemption for Phones, Tablet's, Laptops...

The 2015 Budget Exempts FBT on Portable Electronic Devices - Upgrade Your Mobile Workforce Now and Apply the $20k Write Off Too!

The government will allow a Fringe Benefits Tax ("FBT") exemption from April 1, 2016 for small businesses (those with an annual turnover of less than $2 million) that provide employees with more than one qualifying work related portable electronic device.

What it Means for You

If you provide your employee's with a mobile telephone, a tablet, laptop or other portable electronic device then all of these devices will be exempt from FBT from 1 April 2016. We think this could be a great opportunity to take advantage of the increased immediate asset write off (see our previous post) to upgrade your mobile workforce and you will get a double whammy bonus from the 2015 budget.

The other thing you should seriously consider if you have a mobile workforce is how your accounting system enables their efficiency. The proliferation of cost effective mobile software solutions now means even the smallest business can have the tools once only reserved for the largest corporates. Give us a call on (07) 54391600 to find out how a mobile enabled business can save you hours of wasted time and thousands of dollars. 

Speaking of FBT, the other change to come out of the budget was the creation of a single grossed up cap of $5,000 for salary sacrificed meal entertainment and entertainment facility leasing expenses for employees.

For more information on the changes to FBT or to find out more about how FBT may affect your business give our resident expert, Damon a call on (07) 54391600 or CLICK HERE to make an appointment with one of our qualified team.

 

Don't Let the ATO Sting You for FBT!

Among other things, the ATO regularly matches vehicle registration information against company and business tax files. If you own a vehicle in your business then you are at risk of being targeted for a Fringe Benefits Tax enquiry or audit.

The FBT year runs from 1 April to 31 March 2015, so now is a good time to consider how the FBT rules may affect you. Where an Employer provides a non-cash benefit (ie. use of a motor vehicle) to an employee (including an Owner of the business who is a Director) FBT applies to the value of that benefit at the FBT rate of 49%.

If you provide vehicles to your staff or director(s) or provide other fringe benefits then FBT may apply to you and you should give us a call on (07) 5439 1600 to discuss your possible liability. Or CLICK HERE to make an appointment with one of our qualified advisors.

 

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