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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CapitalQ helped me get off the 9 to 5 treadmill and effectively retire from real work in my late twenties.

I am a property person through and through. I believe there is no better way to build genuine wealth than via property. I have undertaken residential property investing and residential property developments (large and small) and as a result effectively retired from real work in my late 20s. Throughout that time Duncan and the Team at CapitalQ have been my partners (both as advisers and at times literally by taking interests in my projects). I would recommend to anyone thinking about venturing into property investing to ensure CapitalQ are part of the process and watching your back. You need sound personal budgeting, investment analysis, project costing, appropriate structuring, short term and long-term tax planning and ongoing tax advice (and not just covering Income Tax but also GST, Land Tax, Stamp Duty, the list goes on). CapitalQ know all aspects of the property game, and have the hands-on experience as well. Many think property investing is easy, but I can assure you, without the right partner providing the right advice, you will come undone.

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Property Investor and now owner of Xceed Real Estate

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