Tax Traps of Fringe Benefits

The Fringe Benefits Tax year (FBT) ends on 31 March. We explore the problem areas likely to attract the ATO’s attention.

TaxationJPR BUSINESS GROUP7 March 2024tax, Taxation, Fringe benefit tax, ATO, australian tax office

Avoiding the FBT Christmas Grinch

It’s that time of year again - what to do for the Christmas party for the team, customers, gifts of appreciation for your favourite accountant (just kidding), etc. Here are our top tips for a generous and tax effective Christmas season.

Taxation, Financial AccountingJPR BUSINESS GROUP6 December 2022fbt, Fringe benefit tax, ato, taxation

Tax & Employee Benefits: FBT 2021

A fringe benefit is a ‘payment’ to an employee or an associate (an associate is someone related to you such as a spouse, child or even a friend), but in a different form to salary or wages. A benefit might be as simple as hosting a work Christmas party, providing car parking, using a work vehicle, or providing the goods or services of the business at a reduced rate to what the public pay.

FBT hot spots

With the start of the Fringe Benefits Tax year looming on 1 April, businesses are being urged to review their Fringe Benefits Tax (FBT) position.

Taxation, Financial AccountingJPR BUSINESS GROUP11 March 2020fbt, Fringe benefit tax, Taxation, business

Uber style ride sharing and FBT

The ATO has confirmed its view that travel in ride sharing services is not exempt from FBT under this specific exemption as they do not meet the definition of a taxi service under the FBT laws (even though they do under GST law).

However, this does not mean that FBT will necessarily apply to travel undertaken by employees using a ride sharing service.

Corporate Secretarial, TaxationJPR BUSINESS GROUP9 August 2019FBT, Fringe benefit tax, ride share, uber, taxation