Fringe Benefits Tax

Often overlooked, certainly misunderstood, Fringe Benefits Tax is a beast unto itself, separate to and outside the income tax we are all so familiar with.

Fringe Benefits Tax applies to the provision of non-cash benefits to employees and/or their associated.

If instead of paying an employee cash (wages, salary, commission, etc) which they would obviously pay tax on, you decide to give them a non-cash benefit (a holiday or you pay their health insurance, etc) then YOU as the employer pay tax on the value of that non-cash benefit!

The most common form of fringe benefit is, of course, the provision of a motor vehicle and/or the payment of car expenses.

And this includes motor vehicles you and your family use that are owned by the business!

A Fringe Benefits Tax Return is a completely separate tax return to your normal Income Tax Return.

The Fringe Benefits Tax (“FBT”) year also runs on a different time frame to Income Tax and the normal financial year.

Don’t be caught out by the ATO failing to meet your FBT obligations. When it finally happens the tax debt, plus penalties, plus interest, could be crippling. So make sure you seek advice about what items in your business are caught and then ensure your reporting and payment of FBT is managed as required.

Accounting & Tax

What our customers say

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Relieved me of a huge burden, and now keeping my affairs in order and up to date

I came to CapitalQ having experienced substantial business difficulties with my business partner and having been the loser from an Accountant who took sides. I had substantial overdue obligations and the ATO were closing in. I was also highly fearful of my unknown tax position with substantial tax debts likely. CapitalQ went above and beyond to address all issues within my affairs, to bring me entirely up to date with the ATO, and to ensure my resulting tax bill was barely a scratch on what I had feared. They are now keeping my affairs up to date and in order and my stress levels are non-existent relative to those pre-CapitalQ times.

Kim Fewster

Fewsters Farm Honey

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