Fringe Benefits Tax (FBT)

FBT is a tax on employers, for taxable benefits furnished to personnel or their associates, by way of the organization or associates. Typical varieties of benefit are the provision of a car, loans and the charge of expenses. To be taxable, the essential additives of a fringe benefit are:

  • there is an employment relationship
  • a benefit has been supplied
  • it isn't an excluded benefit

FBT: What’s new in 2019-20

  • no change in the FBT and gross-up rates
  • indexation factors for valuing non-remote housing

2019-20 FBT Year

The indexation elements for valuing non-faraway housing for the functions of segment 28 of the Fringe Benefits Tax Assessment Act 1986 for the fringe advantages tax year starting off on 1 April 2019

New South Wales1.020
Victoria1.019
Queensland0.997
South Australia1.008
Western Australia0.937
Tasmania1.043
Northern Territory0.948
Australian Capital Territory1.028

FBT record-preserving exemption threshold for 2020 uplifted to $8,714

  • FBT cents per kilometre for vehicle aside from a car prices uplifted
  • The FBT benchmark interest price for 2019-20 is 5.37% per annum
  • Reasonable meals and drink
  • Car parking daily rate threshold for 2020 is $8.95- adjusted annually

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Business Activity Statement

The business activity statement (BAS) is a form submitted to the Australian Taxation Office by all businesses to report their tax obligations.

These include pay as you go instalments (PAYG)fringe benefits tax (FBT)wine equalization tax (WET) and luxury car tax (LCT). PAYGW is sometimes known as “Income Tax Withholding (ITW),” PAYGI is sometimes known as “Income Tax Instalments (ITI)“.

There is a mixture of different BAS forms which an organization can complete. The form which a business receives depends on what taxation liabilities an organization has (these are referred to as roles). Statements are usually issued quarterly; some roles can be reported at different frequencies depending on business structure and income. Some roles such as GST can be reported annually, subject to eligibility criteria being met.

Although activity statements are frequently submitted quarterly, some entities are required to report obligations on a more frequent basis. Some entities may be required to report PAYG Withholding liabilities or GST monthly.

Every activity statement carries a unique document identification number (DIN). Activity statements can be submitted to the ATO on paper (mail), by phone, electronically (via a Tax Agent’s electronic lodgement system or “ELS”), or through the ATO business portal.

Activity statements are processed by the Australian Taxation Office through its operations sub-plan. Any errors which occur with activity statements are usually handled by a department known as activity statement product (exceptions {ASP(E)}). ASP(E) operates under the operations sub-plan, client account services (CAS) business service line (BSL). Errors may occur when a business client information figures incorrectly, where a client includes cent figures (only dollar figures are allowable), where an arithmetic error occurs, when a statement is submitted when no roles are active for the client, or when the handwriting on a paper statement is illegible.

The business activity statement (BAS) is a tax reporting requirement for businesses issued by us on either a monthly or quarterly basis. It’s used for reporting and paying goods and services tax (GST), pay as you go (PAYG) instalments, PAYG withholding tax and other tax obligations.

When you record for an Australian business number (ABN) and GST, ATO will automatically send you a BAS when it is time to lodge.

All businesses registered for GST are required to lodge a BAS by the due date.

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

Fringe Benefits

Generally, benefits provided to volunteers do not attract fringe benefits tax (FBT) as volunteers are not employees.

Non-profit organizations only pay FBT on profit provided to an employee or a connect of an employee in respect of their employment.

For the purposes of FBT, an employee is a person who receives (or is entitled to receive) salary or wages, and to whom a benefit has been provided in respect of that employment.

Charities that do not have employees will not need FBT endorsement as they have no FBT liability and so have no need to claim any FBT concession. However, charities may want to be endorsed by us in order to contact income tax and goods and services tax (GST) charity concessions.

You may be necessary to pay fringe benefits tax (FBT) if you provide certain fringe benefits to an employee (or their associate) in respect of service. An employee can be a current, future or past employee, or a director of a company or trust.

You will need to pay FBT even if the benefit is provided to an associate of your employee or by a third party under an agreement with you.

Examples of fringe benefits include:

  • allowing your employee to use a work car for private purposes
  • giving your employee a discounted loan
  • paying an employee’s gym membership
  • providing entertainment by way of free tickets to concerts
  • reimbursing an expense incurred by your employee, such as school fees
  • giving benefits under a salary sacrifice arrangement with an employee.

Some employers, including charities, need to charge the status of their workers when working out their FBT liability. Generally, benefits provided to volunteers and contractors don’t attract FBT.

You must self-assess your own FBT liability each FBT year and lodge an FBT return before the due date.

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

Fringe Benefits Tax (FBT)

Fringe benefits tax (FBT) is paid by employers on certain benefits they give to their employees or their employees’ associates (typically family members) in value of the employee’s employment.

FBT is separate from income tax and is based on the taxable value of the fringe benefits provided.

Employers can usually claim an income tax deduction for the cost of providing fringe benefits and for the FBT they pay.

A fringe benefit is a benefit provided to an employee (or their associate) because that person is an employee (or a former or future employee). Benefits can be provided by an employer, an combine of the employer or a third party under an arrangement with the employer.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Fringe Benefit for Tax Purpose

Generally, benefits provided to volunteers do not attract fringe benefits tax (FBT) as volunteers are not employees.

Non-profit organizations only pay FBT on profit provided to an employee or an connect of an employee in respect of their employment.

For the purposes of FBT, an employee is a person who receives (or is entitled to receive) salary or wages, and to whom a benefit has been provided in respect of that employment.

Charities that do not have employees will not need FBT endorsement as they have no FBT liability and so have no need to claim any FBT concession. However, charities may want to be endorsed by us in order to contact income tax and goods and services tax (GST) charity concessions.

You may be necessary to pay fringe benefits tax (FBT) if you provide certain fringe benefits to an employee (or their associate) in respect of service. An employee can be a current, future or past employee, or a director of a company or trust.

You will need to pay FBT even if the benefit is provided to an associate of your employee or by a third party under an agreement with you.

Examples of fringe benefits include:

  • allowing your employee to use a work car for private purposes
  • giving your employee a discounted loan
  • paying an employee’s gym membership
  • providing entertainment by way of free tickets to concerts
  • reimbursing an expense incurred by your employee, such as school fees
  • giving benefits under a salary sacrifice arrangement with an employee.

Some employers, including charities, need to charge the status of their workers when working out their FBT liability. Generally, benefits provided to volunteers and contractors don’t attract FBT.

You must self-assess your own FBT liability each FBT year (1 April to 31 March) and lodge an FBT return before the due date.

For more information on Etax, Mytax and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au