Attention all employers! Want to make sure you’re meeting your FBT obligations? We’ve got you covered with our list of essentials that you need to know and review every year. Check out these questions we answer for you:
- Should you be registered for FBT?
- Should you lodge an FBT return even if no FBT is payable?
- What key things must you do on 31 March 2023?
- What is exempt from FBT?
- How can you reduce your FBT liability?
Understanding the FBT ATO audit window
Don’t want the tax man knocking on your door? Then make sure you register for FBT if you provide your employees with cars, car parking, entertainment, employee discounts, loans, or reimburse private expenses. And even if no FBT is payable, we strongly recommend that you lodge an FBT return. Why? It limits the ATO’s audit window to only three years from the date of lodgement.
To prepare for your FBT return, make sure all logbooks for company vehicles are up-to-date, and all vehicle odometer readings are recorded. We hope you have been remembering to keep track of meal entertainment expenses and preparing a register for every event.
What items are exempt from FBT?
Need to know what items are exempt from FBT? Look no further! Items such as mobile phones, laptops, tablets, protective clothing, tools of trade, or minor and infrequent benefits that are less than $300 in value are unlikely to be subject to FBT. And if you want to reduce your FBT liability, consider providing benefits that your employees would be entitled to claim as an income tax deduction, or using employee contributions. We’ve prepared an FBT checklist that will help with this process, you can download your copy here.
Don’t get caught out. Let the team from MBC Accounting help you with your FBT return this year. We can save you time, money and headaches in the long run. Just reach out here to book in for a call back. We’d love to get to know you and your business better.