2019 Fringe Benefits Tax (FBT)
31 March 2019 marks the end of the Fringe Benefits Tax (FBT) year, and it is at this point we need to review your FBT obligations. The most common fringe benefits arise from motor vehicles, entertainment expenses and other non-cash benefits provided to employees, directors and associated parties of each. To assist in meeting these obligations we have listed below some common situations which may be applicable to your business.
FORM - Please return this information by email prior to 18 April 2019
Generally speaking, a liability arises where an employers motor vehicle is used or available for use by employees and associates for private purposes.
Taxis, Panel Vans and Single Cab Utes that are used predominately for work travel, are exempt vehicles only if any private use is minor and infrequent. If the vehicle only has minor and infrequent private use, please complete the attached Notice of Exempt Vehicle declaration and return to our office.
Dual Cab Utes qualify for the same exemption as single cab utes above only if they are not designed for the principal purpose of carrying passengers.
Dual cab utes are considered to NOT be designed for the principal purpose of carrying passengers if the Passenger Weight Capacity is less than half of the Total Load Capacity. Please provide us with the GVM (Gross Vehicle Weight), Kerb/Tare Weight and Passenger Weight Capacity (Seating capacity) to assist with the calculation/s.
Commercial vehicles such as trucks, large vans and other transport vehicles are exempt from FBT. If you are unsure if you vehicle is commercial or not, please contact our office.
If you have any vehicles that are subject to fringe benefits tax it is important to provide us with the following information at 31 March 2019.
• Purchase or Sale details of any vehicles acquired or sold after 30 June 2018
• Business use % of each vehicle as detailed in a completed and up to date Motor Vehicle Logbook (completed for 12 continuous weeks within the last 5 years).
• Provide all running cost details (GST Inclusive) for the period from 1 April 2018 - 31 March 2019 (a copy of your MYOB/client accounting software or your own summary will provide this information).
Entertainment and Other non-cash Benefits
Please also consider if any of the following common benefits have been provided to staff for each of the following if applicable:
• Entertainment provided to staff/directors, associates of staff (i.e. husbands/wives etc.)
• Living away from home allowances provided to employees other than genuine Living Away From Home Allowance (LAFHA) arrangements which have been documented.
• Interest free loans
• Expenses paid by you on behalf of your employees
If you have incurred any of the above items please provide us with details of these costs, by providing us with bookkeeping records reconciled up to 31 March 2019 (ie. MYOB, Quickbooks, Xero file etc)
If you have any questions or are unsure of your FBT obligations and whether it applies to you, please do not hesitate to contact our office.