FBT Return Accountant

Fringe Benefits Tax (FBT) is a tax employers generally pay on certain non-cash benefits provided to employees or their associates — for example a company car available for private use, a payment of an employee's private expense, or some forms of entertainment. It is separate from income tax and is generally the employer's liability rather than the employee's. Whether a particular benefit is subject to FBT, and how it is valued, depends on your circumstances and the relevant rules, so we review each arrangement rather than assuming an outcome.

The FBT year runs from 1 April to 31 March, which is different to the income tax year. As a general guide, FBT returns have their own lodgement and payment dates after the FBT year ends, and the specific date can depend on whether you lodge yourself or through a registered tax agent. We confirm the applicable due date for your situation as part of the engagement and aim to have working papers settled well before it, rather than treating the deadline as a single fixed date for everyone.

In general terms, a car fringe benefit can arise where an employer makes a car it owns or leases available for an employee's private use, including where the car is garaged at the employee's home. Whether a benefit actually arises, and how it is valued, depends on the facts — the type of vehicle, how it is used, whether records such as a logbook are kept, and the relevant rules. There are also exemptions for certain vehicles in certain circumstances. We assess this case by case rather than assuming every work vehicle creates a liability.

Because FBT is designed to reflect the pre-tax value of a benefit, the taxable value is generally "grossed up" before the FBT rate is applied. As a general matter, benefits are split into two categories — broadly, those where the employer can claim a GST credit (often described as Type 1) and those where it cannot (Type 2) — and each category has its own gross-up factor. The grossing-up calculation depends on the benefit type and the relevant rules, so we work through it for each benefit rather than applying a single rate across the board.

Where an employee receives certain benefits above a threshold during the FBT year, the grossed-up value may need to be reported as a reportable fringe benefits amount (RFBA) and shown through Single Touch Payroll against that employee. As a general guide, the reportable amount is not taxed in the employee's hands as income, but it can be taken into account in various income tests. Whether an amount is reportable, and how it is calculated, depends on the circumstances and the relevant rules, which we work through as part of preparing the return.

No. While many non-cash benefits can attract FBT, some benefits are exempt, reduced, or fall under the minor and infrequent rules, and some are "otherwise deductible" because the employee could have claimed a deduction had they paid for the item themselves. Whether a particular benefit attracts FBT, and at what value, depends on the facts, the records and the relevant rules, so we assess each benefit rather than assuming everything provided to staff is taxable.

In general terms, an amount an employee contributes towards the cost of a benefit — for example towards the running costs of a car they use privately — can reduce the taxable value of that benefit where the rules are met. The contribution needs to be recorded correctly, and there can be GST consequences for the employer. Whether and how a contribution reduces the FBT depends on the circumstances and the relevant rules, which we work through as part of preparing the return.

Fees depend on the number and type of benefits provided, the condition of your records, whether employee declarations and logbooks are already in place, and whether car benefits need to be valued under more than one method. We quote a fixed fee in writing, scoped to your situation, after a short scoping call. There is no standard dollar figure because every employer's benefits mix differs.