The Fringe Benefits Tax year comes to an end on 31st March
Are you aware what might trigger this extra tax for your business and just how costly it could be?
What is a fringe benefit?
A fringe benefit is like a payment to an employee, but in a different form to salary or wages.
To work out how much FBT to pay, you ‘gross-up’ the taxable value of the benefits you’ve provided. This is equivalent to the gross income your employees would have to earn, at the highest marginal tax rate (including the Medicare levy), to buy the benefits themselves.
FBT can be quite costly, that employee gift might cost you a lot more than you anticipated or budgeted for!
Not sure if you might be caught out by this extra tax? Speak to your tax agent about your situation and what exemptions might apply. They may also assist you to make smarter decisions to avoid future lodgements and liabilities.
