FBT Time is Fast Approaching!

FBT time is fast approaching!

Get our comprehensive FBT checklist to ensure you comply with regulatory requirements.

The ATO advises employers that 'FBT time' is just around the corner, and it is important that they stay on top of their fringe benefits tax ('FBT') employer obligations.

Employers need to do the following this FBT time:

  • Work out if they have an FBT liability regarding fringe benefits they have provided to their employees or their associates between 1 April 2023 and 31 March 2024.
  • If they have an FBT liability they need to lodge an FBT return and pay the amount due by 21 May 2024.
  • If they possess any vehicles in their business, they will need to take note of the Closing Odometer readings at 31 March 2024 for each vehicle.
  • If they are currently registered for FBT but they do not need to lodge an FBT return, they should let the ATO know (e.g., by lodging an FBT non-lodgment notice) to prevent the ATO seeking a return from them at a later date.
  • Employers should remember that when the new FBT year starts on 1 April, they can choose to use existing records instead of travel diaries and declarations for some fringe benefits.

The ATO has released PCG 2024/2 which provides a short cut method to help work out the cost of charging electric vehicles ('EV') at an employee's home for FBT purposes. Eligible employers can choose to use either the EV home charging rate of 4.2 cents per kilometre or the actual cost.

To find out more about FBT requirements, visit the ATO website.

How Trinity Can Help

If you're a small business owner, we can help you finalise your FBT Return to:

  1. Mitigate Audit Exposure: By promptly lodging your FBT return, you limit the ATO's FBT audit scope to three years, effectively minimising your exposure to potential audits and any risks associated with FBT.
  2. Ensure Compliance: We'll ensure your FBT return is completed in accordance with the latest regulations.
  3. Avoid ATO Scrutiny: Non-compliance with FBT obligations may trigger scrutiny from the ATO, leading to audits and investigations into other areas such as income tax returns and business activity statements that could disrupt business operations and consume valuable time and resources.

We've provided a comprehensive FBT checklist designed to unveil potential employee benefits stemming from your business operations. If you've ticked any items listed, it's essential to lodge an FBT return to comply with regulatory requirements.

If you’d like to know how we can help, contact us today!

  Download Your FBT Checklist Download Your FBT Checklist

Ref: NTAA March 2024 Newsletter


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