FRINGE BENEFIT TAX - FBT
An FBT obligation is created when a benefit is provided to an employee by the employer. A Fringe Benefit Tax is levied on the employers.
There are two ways to prepare an FBT obligation
1. By lodging an FBT Return by the 21st of May each year.
2. By your accountant acknowledging that obligation in the businesses year end financials. Please contact us to discuss your FBT obligations if any of the following apply to your business
· Car Fringe Benefits
· Loan Fringe Benefits
· Living-away-from-home allowance Fringe Benefits
· Airline Transport
· Providing entertainment etc.
We can help you calculate your FBT so you won't pay more tax than necessary.
Key Changes for 2014 FBT Returns
In-house salary sacrifice benefits
- Previously 75% of lowest price an identical item could be sold to the public or at an arm's length with a $1,000 reduction allowable.
- For any salary sacrifice arrangements entered into after 22 December 2012 must use market value an no $1,000 reduction allowed.
- Tax agents lodging electronically - 25 June 2014 with payment due 28 May 2014.
- For no agent or lodging manually - 21 May 2014 with payment due 21 May 2014.
Proposed changes to make the car fringe benefits statutory formula a flat 20% regardless of kilometers travelled has been scrapped by the new (Abbott) government and will not proceed.
Increase in Gross-up rates and FBT rate are effective 1 April 2014 due to increase of Medicare Levy which is effective 1 July 2014.
Airline Transport fringe benefit taxable values are now based on 75% of the stand-by airline travel value less employee contributions.
- On a domestic route the stand-by airline travel rate is 50% of the carriers lowest standard single economy airfare for that route as publicly advertised during the tax year.
- On an international route the stand-by airline travel rate is 50% of the carriers lowest standard single economy airfare for that route as publicly advertised during the tax year.
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