The Fringe Benefits Tax Time for the year 2021-22 ends on 31 March and now is the time to start considering about your FBT lodgment and payment obligations. This means, you’ll need to determine if you have an FBT liability for any fringe benefits provided to employees at the workplace between 1 April 2021 and 31 March 2022.
As a company owner or employer, you or your tax agent must assess your fringe benefits tax liability to determine whether you have a lodgment and payment obligation.
Who Needs To Pay A FBT Return?
There are two scenarios as follows:
- If you have an FBT liability for the year, you must lodge an FBT return and pay your liability by 23 May 2022. For lodging through a tax agent, the due date may differ.
- If you don’t have an FBT liability for the year and have registered as an FBT payer, make sure you fill a Notice of non-lodgment – Fringe benefits tax form by 31 March.
What To Keep In Mind Before Lodging Your FBT Return?
To prevent ATO auditing or any error in the lodgment, make sure you:
- Check if you’ve provided any fringe benefits to employees at types of fringe benefits.
- Decide how you’re going to calculate liability by checking different methods of calculating FBT.
- Check if you’re eligible for any exemptions and concessions reducing the amount of FBT you pay.
- Check COVID-19 and fringe benefits tax to see if FBT applies to exemptions and concessions.
- Keep all records relating to the benefits you’ve provided, including:
- how you calculated the taxable value of benefits.
- exemptions or concessions you’re eligible for to reduce your FBT liability.
If you’re having any difficulty in making a payment or calculating fringe benefits tax, feel free to contact our tax accountants at KPG Taxation before the due date and discuss your lodgment needs. For more information, schedule a consultation with our team.