FBT Under Scrutiny: Are you compliant?

Fringe benefits tax (FBT) is under heightened scrutiny for this coming FBT year, as the Australian Tax Office (ATO) estimates a $1 billion FBT gap.

Primary reasons for the gap being identifed as:

  • Employers not participating in the FBT system when they provide benefits to employees
  • Misunderstanding of FBT laws
  • Employer hesitation due to fear of additional cost

In this video, our team explain how to prepare for FBT year end, stay compliant and optimise your return.

Please contact us if you would like support in effectively managing your FBT obligations.

Video transcript

Hi my name is Jacques van Dyk and I’m a Senior Accountant at O’Brien Accountants and Advisors. Today we’re talking about an essential topic for business owners Fringe Benefit Taxes or FBT. The ATO estimates there’s a $1 billion FBT Gap means FBT is under heightened scrutiny from the ATO.

With the FBT year end around the corner it’s crucial to understand how to stay compliant and optimise your returns. Joining us is our FBT specialist Brad Tremellen. Brad, what exactly is Fringe Benefit Taxes?

FBT is a tax payable by employers on cash or non-cash benefits provided to their employees which are in addition to salary and wages and superannuation guarantee. The FBT year is different to the financial year. The date range is 1 April to 31 March which is to help employers update payroll if required.

If business owners believe they are impacted by FBT what do you suggest they can do to prepare for the 31 March
FBT deadline?

I think first of all review the accounts; what’s flowing through your profit and loss, are there any motor vehicle expenses, is there entertainment for employees meeting clients, do you have motor vehicles on the balance sheet, if so are your employees driving them?They’re all the key things to look at.

Great, thank you for those insights. It’s clear that with proper understanding and preparation clients can navigate the FBT season effectively and manage their obligations.

If you need assistance please contact O’Brien Accountants & Advisors and our team is here to help you.