End of FBT Year 31 March 2020

 In Accounting & Business Advisory

FBT 2020 Questionnaire

 

The Fringe Benefits Tax (FBT) year finishes on 31 March 2020, and we will need to prepare and lodge your 2020 FBT return by 25 June 2020. Any FBT payable will be due by 28 May 2020.

 

The questionnaire at the bottom of this page contains a series of questions that we need answered to complete an FBT return on your behalf.  Please answer these questions and return them to us by 27 April 2020.

 

Less Common FBT Expenses to Keep in Mind

 

FBT covers all expenses where an employee may receive a benefit. While our questionnaire covers the most common benefit of Motor Vehicle expenses, at this time of the year we should check if any other expenses could be subject to FBT. Listed below are some of these expenses. If you have any of the following please contact your accountant to discuss.

 

  • Living away from Home – Providing and/or paying for an employee’s accommodation and/or living expenses.
  • Car Parking – Providing a car parking spot for employees on or near the business premises, where the business is located within 1 kilometre of a commercial parking centre.
  • Meal Entertainment – Providing food, drink or recreation outside of the normal work environment and hours.
  • Entertainment Facility Leasing Expenses – Hiring or leasing a corporate box, boat, plane, holiday accommodation or other facility used to provide entertainment to employee.
  • Uber travel between home & work – Providing Uber travel (not taxi travel) to employees on a regular basis, where the journey begin or ends at the employee’s place of work.

 

Reimbursements – Prior to 31 March 2020

 

Telephone expenses may require some attention in order to avoid the imposition of FBT.  As most clients pay their home telephone accounts through their Company or Family Trust, the private use element should be reimbursed to the Company/Trust prior to 31 March 2020.

 

In most cases a reimbursement of $330 (GST inclusive) should be sufficient.  However, you may need to exercise your own discretion and increase this further if your “Private Use” is high.

 

Please make your telephone contribution to your business account as soon as possible.

2020 Payment Summaries

 

If the taxable value of an employee’s fringe benefits exceeds $2,000, the government requires the employer to record the taxable value of fringe benefits provided to the employee at the ‘Reportable Fringe Benefits Amount (RFBA)’ column on employee’s Payment Summary.

 

It should be noted that employees are not required to include their RFBAs in their assessable income when lodging their individual tax returns (i.e. employees do not pay income tax on their RFBAs). Instead, the RFBAs is taken into account when applying the relevant income test to determine if an employee is entitled to claim, or liable to pay, a range of tax or non-tax concessions or obligations, such as:

 

  • Determining the deductibility of employee’s personal superannuation contributions;
  • Determining the eligibility for other tax offsets (e.g. Senior and Pensioner Tax Offset);
  • Determining the repayment amount of an employee’s HELP/HECS debt;
  • Determining the eligibility for family assistance payments (e.g. Child Support, certain Centrelink payments, paid parental leave, etc.).

 

On completion of your 2020 FBT return we will notify you of the taxable value of the fringe benefits to be included on the Payment Summaries, where applicable.

 

Analysis

 

We will provide you with an analysis of your current motor vehicle situation and comparative cost of continuing with the FBT system once we have prepared your return.

 

The cost of preparing your Fringe Benefits Tax Return, and providing you with an analysis of your situation will be $550 (GST inclusive), plus an additional amount for subsequent cars and any GST adjustments required.

 

We Need Your Responses!

 

We will need your details by 27 April 2020.  This will enable us to meet the lodgement deadline.  The Taxation Office will impose penalties for late lodgement.

 

If you have any queries, please do not hesitate to contact our office.

 

Questionnaire

 

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