The 2024 Fringe Benefits Tax (FBT) year runs from 1 April 2023 to 31 March 2024.
If you are getting assistance from Harris Black (your tax agent) with your 2024 FBT return, the due date for lodgement and payment is 25 June 2024.
What is FBT?
FBT is a tax on non-cash benefits provided to employees or their associates. This also includes non-salary directors/trustees. The tax is paid by the employer and is separate from income tax. Below are some common examples of non-cash benefits provided to employees where FBT may apply:
- Allowing a vehicle owned by the employer to be used by an employee for private purposes.
- Payment of expenses on behalf of an employee.
- Providing entertainment to employees such as Christmas parties, meals, drinks, or recreational activities.
- Providing loans to employees or forgiving debts owed by the employee to the employer.
- Payments to an employee to compensate for living expenses incurred due to having to live away from their normal place of residence for work purposes.
What to do next
In preparation for the 2024 FBT year ended 31 March 2024, please be sure to:
- Consider if you have provided non-cash benefits to employees that may be relevant for FBT.
- Consider keeping a logbook for a period of 12 weeks detailing the business/private use of any vehicles used by employees. This allows for calculation of the FBT using the operating cost method which can often yield a more favourable result.
- Make note of the closing odometer reading at 31 March 2024 for any vehicles used by employees.
- Provide explanations for transactions in your online accounting software for any transactions coded to ‘Entertainment expenses’ or ‘Staff amenities’ to allow your Harris Black team member to differentiate between FBT-applicable and FBT-exempt transactions.
Harris Black has recently sent FBT checklists to clients operating businesses to assist with identifying FBT reportable benefits. If you do not receive a checklist but believe you may have provided applicable non-cash benefits, please let your Harris Black team member know.
If you have any questions, or would like to discuss your specific situation, please do not hesitate to contact us.