The end of March is fast approaching, the finish line of the Fringe Benefits Tax (FBT) year. Documentation will be more important than ever this FBT year, as the ATO is predicted to keep a close eye on fringe benefits whilst many businesses and employees continued to work from home over the past year.
Another reason why car benefits would be in focus is because it is one of the most common benefits provided to employees or business owners. Change in the usage of cars could mean a significant change in the FBT applicable on a motor vehicle.
FBT for cars – logbook or statutory formula?
Which method should a business use? Either method. A business can elect the method that produces the best (i.e. lowest) tax outcome each FBT year. So it may be worthwhile discussing with our team at MKS Group to gain the best result.
The ATO has a useful publication regarding the impacts of COVID-19 and car fringe benefits – CLICK HERE TO READ IN DETAIL.
Other benefits provided to employees…
The pandemic has demonstrated various incidental or in frequent benefits provided to employees – especially those that have been working from home. The ATO’s guide below outlines the treatment of these benefits for FBT purposes, however the team at MKS Group can help you through situations to keep you compliant this FBT season. – CLICK HERE TO READ THE FULL ATO GUIDE
How can we help?
Working out your fringe benefits tax liability can be a headache, especially when you consider the changes in business working environments over the last few years.
We will be directly communicating with clients who have previously lodged FBT returns in the coming weeks. However if you believe that you need to discuss your situation with us, we recommend you call us on (03) 9374 8400 to speak to our team if you need any assistance.