FBT tax returns due 21 May 2011
Posted on: 23/03/2011
As you may be aware, the Fringe Benefits Tax (‘FBT’) year for 2011 is rapidly coming to a close. To assist you in preparing for this busy time, we have outlined below some of the benefits you may provide to your employees, as well as a number of issues to consider in the coming weeks.
The FBT year will be ending on 31 March 2011 and most returns are due for both lodgement and payment by 21 May 2011 or 28 May 2011 if lodging through a tax agent. In some circumstances, we may be able to apply for a deferral on your behalf; however payment will still be required by 28 May 2011. For your information, the current FBT rate is 46.5% and the type 1 and type 2 gross-up rates are 2.0647 and 1.8692 respectively.
The main types of fringe benefits you may provide to your employees are as follows:
- Cars available for private use
- Loans to employees
- Waiving any debts owed to you by your employees
- Expense payments
- Housing and/or board
- Airline transport
- Living away from home allowances
- Entertainment by way of food, drink or recreation
- Car parking
- Property benefits provided free or at a discount
- Residual benefits
If you are providing car fringe benefits, now is the time to ensure that all log books are up to date (if required) and you are ready to take your odometer readings on Thursday 31 March 2011.
In addition, you may need to arrange for your employees to sign the necessary private use declarations.
Should you have any queries in respect of exempt benefits (e.g. mobile phones, laptop computers, protective clothing, other work-related items, relocation expenses etc.) please do not hesitate to contact us. We note that the threshold for minor and infrequent fringe benefits remains at $300 for the 2011 FBT year.
Please remember that reportable fringe benefits amounts must be recorded on your employee’s PAYG summaries and the taxable value threshold remains at $2,000 for the 2011 FBT year.
M Squared & Associates Pty Ltd would be pleased to assist you by preparing or reviewing your fringe benefits tax return. If you have any fringe benefits tax queries or would like to review the way you structure your employee benefits, please do not hesitate to contact us.
Alternatively should you not require M Squared & Associates assistance or you do not have any FBT compliance obligations, please contact our office so we can update our lodgement list.