The fringe benefits tax (FBT) year ends on 31 March. That means it’s time to review the benefits you’ve provided to your employees for the last 12 months and work out which benefits attract FBT.
You need to lodge your FBT return by 21 May 2021. This date may differ if you lodge through a tax agent.
Examples of fringe benefits include:
• private use of work cars
• entertainment (e.g. concert tickets)
• reimbursement of employees’ expenses (e.g. school fees)
• salary sacrifice arrangements.
Over the past year, there have been many changes and restrictions due to COVID. To adapt, you may have provided your employee’s different benefits to those you usually provide, and these may be exempt from FBT.
Generally, you do not need to pay FBT for:
• Items provided to employees to enable them to work from home (e.g. laptop or portable device)
• Emergency accommodation, food and transport
• Emergency health care.
The minor benefits exemption may also apply for minor, infrequent and irregular benefits under $300.
Find out more about when it is (and isn’t) a fringe benefit through this link: www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/Reporting,-lodging-and-paying-FBT/How-to-lodge-your-FBT-return/
Check your pay as you go instalment
Now is a good time to check your pay as you go (PAYG) instalments still reflect your expected end of year tax liability. – people, time spent and consumption, either out of necessity or a desire to take the opportunity to reset, in this once-in-one-hundred-year great reset moment.
If your circumstances have changed and you think you will pay too much (or too little) in instalments for the year, you can vary your instalments on your next activity statement.
You can vary your instalments multiple times throughout the year. Your varied amount or rate will apply for your remaining instalments for the income year or until you make another variation.
If you continue to be affected by COVID-19, the Taxation office won’t apply penalties or charge interest to varied instalments relating to the 2020-21 income year. This applies when you have made your best attempt to estimate your end of year tax liability.
The ATO will no longer issue activity statements or PAYG instalment notices on paper once you have lodged them electronically. So, if you vary an amount or rate online, it will result in an end to paper activity statements and instalment notices.
You’ll need to consider this when deciding how to lodge, revise and vary future activity statements and instalment amounts.
Remember, registered tax agents and BAS agents can help you with your tax.