What employers need to know about FBT 2021
On 31 March 2021, the Fringe Benefits Tax (FBT) year ends. 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.
We have outlined the key issues for employers this FBT year in the article FBT 2021: What you need to know. This article covers:
- COVID-19 assistance and benefits
- Motor vehicle problem areas
- ATO ‘red flags’:
- Where deductions claimed don’t match what is reported for FBT purposes
- Mismatched FBT and income tax amounts
- When business assets are used personally by owners and staff
- Not lodging FBT returns
- Salary sacrifice problem areas
- Car parking under scrutiny
- Housekeeping essentials