Fringe Benefits Tax - CapitalQ

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.

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Yep, Its tax time….so don’t put off lodging your returns.

Those who want to legally pay the absolute minimum tax know how important it is to choose the right tax accountants and advisers.

CapitalQ are your local, highly qualified and experienced Chartered Accountants who guarantee you will receive the maximum refund legally possible.

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What our customers say

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Working with CapitalQ business accountants in Perth helped to take some of the pressure off what was a very stressful time. They have always been patient and helpful, and explain things in terms we can understand. They have helped us to take our complicated business structure and make the accounting side of it manageable and much more efficient. We look forward to continuing to work with CapitalQ in the future and to the benefits that this will bring to our business and our peace of mind.

Amy Rosato

Stratosfunk (Perth)

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