Fringe Benefits Tax year end is today
Today is the end of the Fringe Benefits Tax year – take an odometer reading for your company car.
Tomorrow is April Fools Day – its probably just a coincidence?
31/03/2025
Today is the end of the Fringe Benefits Tax year – take an odometer reading for your company car.
Tomorrow is April Fools Day – its probably just a coincidence?
Are you aware what might trigger this extra tax for your business and just how costly it could be?
ATO says:
Fringe benefits tax (FBT) is a tax paid by employers on certain benefits provided to their employees, or to their employees’ family or other associates.
The employer pays FBT. 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, those employee perks might cost you a lot more than you anticipated or budgeted for!
Hackers are targeting small business inboxes and changing bank details on invoices you send out to your customers. To minimise risk, we recommend adding text to your invoice email and/or invoice template.
We’d hate for the wrong people to get your money!
Talking about money is awkward!
Its probably more unpleasant if you have to tell suppliers and employees you don’t have the money to pay them.
If you can’t pay your bills on time, you may be insolvent and that can lead to harsh penalties for the directors. (penalties up to $200,000)
Speak to us or your expert as soon as you think you might be in money trouble – you’ll have more options and less stress if you start the conversation early. Lets chat!
Be your own boss! (We don’t mean a mob boss!)
We make it look easy, but there are lots of traps for young players.
At 30 June 2024 there were 2,662,998 actively trading businesses in the Australian economy. 97% of those are small businesses according to ABS.
UTS says: one in three new small businesses in Australia fail in their first year of operation, two out of four by the end of the second year, and three out of four by the fifth year.
What can you do to increase your odds of surviving and thriving?
There are lots of free tools available.
If you decide to go ahead and be the boss – prepare yourself for a wild ride!
Looking for a few tips over breakfast?
Come join Nicole on Wednesday 29th May.
Tax planning needs to happen now – 30th June is too late!
Don’t go making crazy purchases without reviewing where you are at, and speaking to your tax accountant. EOFY deals are great for salespeople trying to meet their commission targets, they might not really benefit you and your business.
You can’t make sensible last minute decisions without data.
Speak to your experts before Financial New Years Eve!
And look at how to setup 2025 to be an even better year for your business!
The Fringe Benefits Tax year ends on 31st March, are you aware what might trigger this extra tax for your business?
A fringe benefit is like a payment to an employee, but in a different form to salary or wages.
Your tax agent can assist with calculations, lodgement, and what exemptions might apply. They may also assist you to make smarter decisions to avoid future lodgements and liabilities.
How do you show your team that you appreciate them?
If you’re thinking of conveying recognition with a gift – keep the fun business tax (or Fringe Benefits Tax if you want to use the technical term) in mind.
Employee of the month awards and a public pat on the back can also be powerful (and cost effective).
Are your team working their proper hours? Do you know what the proper hours are?
Fairwork says:
Maximum weekly hours form part of the National Employment Standards (NES). The NES apply to all employees covered by the national workplace relations system, regardless of any award, agreement or contract.
– maximum ordinary hours that can be worked in a day, week, fortnight or month
– minimum ordinary hours that can be worked in a day
– times of the day that ordinary hours can be worked this is called the spread of hours (for example, between 7am and 7pm).
The ‘spread of hours’ may catch you out if you allow your team to work flexible hours (after they’ve had dinner) – they still need to fit inside the spread of hours or you could be up for overtime rates!
On 6th December 2023 the ATO released a new Tax Ruling in response to a High Court decision about classifying workers.
We’ve trawled through various ATO pages and summarised it for you with links.
To work out if your worker is an employee or contractor, you need to determine whether your worker is serving in your business or is running their own business. You do this by reviewing the legal rights and obligations in the contract you entered into with your worker.
– Ask for help if you need it!
