Does your business lodge an FBT Return?
The ATO is concerned that some businesses that employ staff (even closely held staff such as family members) are not disclosing and accounting for all of their FBT liabilities.
It’s essential to review your position and be certain that you do not have an FBT liability. If your business provides cars, car spaces, staff gifts and vouchers, reimburses private (not business) expenses, provides entertainment (food and drink), employee discounts etc., then it’s likely you are providing a fringe benefit.
For those businesses that have previously lodged an FBT Return, the FMA team are busy tailoring questionnaires and documentation to help you meet your 2021 FBT obligations. The ATO has set the 25th of June as the due date for all 2021 FBT returns lodged through FMA.
If you have not previously lodged an FBT return and would like a copy of our FBT questionnaire to help understand your FBT obligations, please get in touch.
If you provide car fringe benefits under the operating cost method
Employers need to ensure they have a copy of an employee’s valid log book for the period 1 April 2020 to 31 March 2021. Employees must also take an odometer reading at 31 March 2021 and provide this to their employer if they wish to use the operating cost method when calculating any FBT liability.
We suggest employees take a photo on their phone and email it through to a central contact person in your organisation.
FBT Rate
The FBT rate remains unchanged since 1 April 2017 and remains current until 31 March 2022.
| FBT year |
FBT Rate |
Type 1 Gross Up rate |
Type 2 Gross Up rate |
1 April 2020 to
31 March 2021 |
47% |
2.0802 |
1.8868 |
|
