As the Fringe Benefits Tax (FBT) year has concluded on 31st March, 2021, it is high time that you review what all fringe benefits you have provided to your employees during the year and calculate the FBT liability thereon. With the compliance clock ticking, you might need to hurry up as the return has to be lodged by 21st May, 2021. Your due date will although be different if you choose to lodge the FBT return through a tax agent.
What all is included in fringe benefits?
Here are some of the examples of fringe benefits that employers usually provide to their employees:
- Personal use of work car
- Reimbursement of personal expenses
- Payments against salary sacrifice arrangements
However, these are some benefits that are excluded from the ambit of FBT. These include:
- Equipment given as aid in work from home such as laptop
- Emergency accommodation, food and transport facility
- Minor benefits provided up to $300
Frequency of FBT payments
You are required to pay FBT due by 21st May, 2021 for the year ended 31st March, 2021. Regarding the interval of FBP payments, consider the following scenarios:
- If you are paying FBT for the first time or your FBT payment was less than $3,000 last year: You have to pay single payment for the year.
- If your FBT payment was $3,000 or more last year: In this scenario, you need to pay FBT in quarterly installments through activity statements. If there is any balancing payment to be made, the due for the same is 21st May.
You might need to note that if in a year you have paid FBT installments and you don’t have any FBT liability for that year, then also you need to lodge the FBT return. By doing so, you will be able to claim refund of FBT paid during the year.
When not to lodge FBT return?
If during the year you don’t have any FBT liability and also you have not paid any FBT installment, then you need not lodge FBT return for that year. Instead, you need to fill in FBT-notice of non-lodgement as per the due date of your FBT return lodgement.
Ways to lodge FBT return
You have the following options to lodge your FBT return:
You can download the FBT forms for year 2021 and get started with the return lodgement process.