Fringe benefits tax (FBT) applies when businesses provide benefits to employees outside of their normal wages. At Key Accountants, we help you identify if FBT applies to your business, calculate your FBT liability, and assist with salary packaging strategies.
FBT is a separate tax from income tax and is calculated based on the taxable value of the benefits provided. The FBT year runs from 1 April to 31 March, and businesses are required to self-assess and lodge an FBT return annually.
Common examples of fringe benefits include:
Providing a car for private use
Paying for an employee’s gym membership
Giving free concert tickets or entertainment
Reimbursing school fees
Offering low-interest loans
Setting up superannuation or novated lease arrangements
We support both companies and trusts, including directors who may receive fringe benefits. Our services include:
Calculating your fringe benefits tax obligations
Reviewing salary packaging and structuring benefits
Preparing and lodging FBT returns
Helping with FBT exemption categories for charities or specific employers
If you’re unsure whether FBT applies to your situation, our team will guide you through the rules and help you avoid unexpected liabilities.
We also recommend reviewing your payroll processes to ensure all benefits are recorded properly and reported on time.
Need help managing your FBT obligations? Contact us today to make sure your business is compliant and structured efficiently.
