Fringe Benefits Tax (FBT) is a tax paid by employers on certain benefits they provide to their employees or their employees' associates, in addition to salary or wages. Examples include company cars, entertainment, loans, and discounts.

Benefits such as car allowances, entertainment expenses, interest-free loans, discounted goods or services, and housing provided to employees may be subject to FBT. Some benefits may be exempt or attract concessions, which we can help you identify.

You can reduce FBT liability by structuring benefits efficiently, utilising available exemptions and concessions, and having employees contribute towards the cost of the benefits. Our experts can provide tailored strategies to minimise your FBT costs.

FBT is calculated from 1 April to 31 March each year. The annual FBT return is typically due by 21 May unless you lodge through a tax agent, which may extend the deadline. We ensure timely preparation and lodgement to avoid penalties.

You should maintain detailed records of all benefits provided, including the nature, value, and recipients of each benefit. Proper documentation is crucial for accurate FBT calculations and to support any claims for exemptions or reductions.

Yes, certain benefits may be exempt from FBT or qualify for concessions. Examples include minor benefits, work-related items such as laptops and mobile phones, and some employee relocation expenses. We can help identify which benefits may be exempt or eligible for concessions.

Factor1 offers comprehensive FBT services, including benefit assessments, strategic advice, preparation and lodgement of FBT returns, record-keeping support, and ongoing compliance checks to ensure your business meets all FBT obligations.

Non-compliance with FBT regulations can result in penalties, interest charges, and potential audits. We help you stay compliant by providing accurate and timely advice and handling all aspects of your FBT requirements.

Yes, it is good practice to communicate with employees about the benefits they receive and any FBT implications, especially if employee contributions are required to reduce FBT liability. We can help you with employee education and communication strategies.

Contact us today to schedule a consultation with one of our FBT experts. We will assess your needs and tailor a solution to ensure compliance and reduce your tax burden.