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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I was headed for ATO disaster... but thanks to CapitalQ we nipped it in the bud

I know everything there is to know about the services my business provide, and I know how to do it well and how to grow my business. But I know little about, and don’t want to know about, the tax and accounting and administrative side of things. As a result I was always behind, always struggling with paperwork and administration that I never came close to managing or getting on top of. CapitalQ worked with me to get my head above water, then to streamline that side of my business and manage much of it for me. A huge weight was lifted from my shoulders, my stress levels completely subsided and life was great. The result … an unsolicited buy-out offer for my first business (which I accepted) helping to set up financially me and my family for life. I have now started my second business, and they are doing it all over again. Business profits are growing, and I am once again fighting off suitors!
Craig Wilschefski

Craig Wilschefski

Founder and Director of Home Loan Republic and Finance for Fitness

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