FBT time is fast approaching!
The ATO has advised employers that 'FBT time' is just around the corner, and they need to stay on top of their fringe benefits tax (FBT) obligations.
Employers need to ensure they have attended to the following matters this FBT time:
- Identify if they have an FBT liability regarding fringe benefits they have provided to their employees or their associates between 1 April 2023 and 31 March 2024.
- Identify if they have an FBT liability as they will need to lodge an FBT return and pay the amount due by 21 May.
- Identify if they are currently registered for FBT and let the ATO know if they do not need to lodge an FBT return (Editor: by asking us to lodge an FBT non-lodgement notice) to prevent the ATO seeking a return from them at a later date.
- Employers should also remember that when the new FBT year starts on 1 April, they can choose to use existing records instead of travel diaries and declarations for some fringe benefits.
Furthermore, the ATO has released PCG 2024/2 which provides a short cut method to help work out the cost of charging electric vehicles ('EV') at an employee's home for FBT purposes.
Eligible employers can choose to use either the EV home charging rate of 4.2 cents per kilometre or the actual cost.
Ultimately, all employers need to make sure they understand their FBT obligations and the records they need to keep to avoid an FBT liability. See our article here for FBT tax trips this year.
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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.
