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.

Accounting & Tax

What our customers say

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2017 was a bumperyear, that meant a big tax bill, or it would have if it wasn’t for CapitalQ

After a former business partnership fell apart, we needed help to restart and rebuild. That’s when we met Kapil, Duncan and the CapitalQ Team. They helped us get two new businesses off the ground and they have helped us achieve efficiencies and profitability in a very short time frame. In fact 2017 exceeded our expectations and while that meant we could buy our first super car (a Lamborghini Gallardo) that also meant we would be looking at a substantial tax bill. But Kapil and the Team went all out to come up with plans to help minimise our tax bill for the year and allow us to keep investing in our businesses (and our toys) ;) Based on our past dealings with other Accountants, we never knew the difference a good Accountant could make. We couldn’t have done it without them and we can’t recommend the Team at CapitalQ highly enough!

Ryan Shreeve & Tara Thomas

Founder and Director VRN Cleaning & Founder and Director Eeve Security Services

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