In the spirit of being prepared – FBT season is almost upon us and it’s crucial for employers to be in the know about their obligations. Here’s a quick checklist to keep you on top of your game:
Identify Potential FBT Liabilities: Review the fringe benefits you’ve provided to your employees or their associates from 1 April 2023 to 31 March 2024. These can range from company cars to entertainment expenses, so keep a keen eye on all perks provided.
Lodgement and Payment: If you’ve identified that you do owe FBT, remember to lodge your FBT return and make payment by 21 May. Timeliness is key to avoid any penalties or interest.
Registration Housekeeping: If you’re registered for FBT but won’t need to lodge a return this time around, give the ATO a heads up. This proactive step can save you from unnecessary follow-up and paperwork.
Record-Keeping Simplification: With the new FBT year starting on 1 April, you have the option to stick with existing records instead of needing to compile fresh travel diaries and declarations for certain benefits. A little relief in the paperwork department!
New Guidelines Alert: There’s a handy new guideline for calculating the cost of charging electric vehicles (EVs) at an employee’s home for FBT purposes. You have the choice between using a simplified rate of 4.2 cents per kilometre or calculating the actual cost. This is particularly relevant as more businesses adopt sustainable practices.
Understand Your Obligations: Familiarise yourself with the ins and outs of FBT requirements and the necessary record-keeping to steer clear of potential liabilities.
For a more detailed exploration or specific advice, the ATO’s website is a treasure trove of information, and of course, consulting with your friendly family of specialists at Nova.
Give us a call on 1800 668 225 or shoot us an email by clicking here to ask us any questions about anything to do with business from BAS to debt collection and more.
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