It’s FBT Time
The Fringe Benefits Tax (FBT) year finishes on 31 March 2017. FBT covers all expenses paid by an employer where an employee may receive a benefit. Don’t forget to take your odometer readings on 31 March if you believe this applies to you. We will need to prepare and lodge any 2017 FBT returns by 25 June 2017. Any FBT payable will be due by 28 May 2017.
FBT 2017 Questionnaire
Following is a series of questions that we need answered to complete the work on your behalf. Please answer these questions and return them to us by 20 April 2017.
FBT Expenses not in Questionnaire
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 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 us to discuss your options.
- 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 – this is if you provide 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 2017
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 2017.
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.
2017 PAYG Summaries (Group Certificates)
If the taxable value of your fringe benefits exceeds $2,000, the government requires your employer to record the taxable value of fringe benefits provided to you, on your PAYG Summary (Group Certificate).
On completion of your 2017 FBT return we will notify you of the taxable value of the fringe benefits to be included on the PAYG Summaries (Group Certificates) where applicable.
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 20 April 2017. This will enable us to meet the lodgement deadline. The Taxation Office will impose penalties for late lodgement.