Get ready for fringe benefits tax time

The 2022 fringe benefits tax (FBT) year ends on 31 March 2022, so it’s a good time to start considering what you need to do to lodge and pay your FBT.

You'll need to work out if you have an FBT liability for fringe benefits you’ve provided to your employees (or their associates) between 1 April 2021 and 31 March 2022.

If you:

  • have an FBT liability for the 2022 FBT year, you must lodge an FBT return and pay your liability by 23 May 2022 (as the due date of 21 May falls on a weekend this year). If you use a tax agent, the due date may differ.

  • don't have an FBT liability for the 2022 FBT year and you are registered with us as an FBT payer, you should complete a Notice of non-lodgment - Fringe benefits tax form by the date your return would've otherwise been due.

Before lodging your FBT return

  • Check if you've provided fringe benefits to your employees at types of fringe benefits.

  • Decide how you're going to calculate your liability. You can see the different methods available at calculating your FBT.

  • Check if you're eligible for any exemptions and concessions, which can help to reduce the amount of FBT you pay.

  • If you've paid for items that you do not usually provide due to COVID-19, check COVID-19 and fringe benefits tax to see if FBT applies to you and what exemptions and concessions are available.

  • Keep all records relating to the benefits you've provided, including:

  • how you calculated the taxable value of benefits

  • exemptions or concessions that you're eligible for to reduce your FBT liability.

Not lodging FBT returns

This year, the ATO is concerned that some employers are not lodging FBT returns or lodging them late to avoid paying tax. Whilst a difficult year for many businesses, we believe that the ATO will pay close attention to any employer that is:

  • registered for FBT but lodges late. If your business is going to face challenges lodging the FBT return, please contact us as early as possible and we will get in touch with the ATO to request an extension on your behalf.

  • not registered for FBT but employs staff (even closely held staff such as family members), and is not registered for FBT. It’s highly essential you have reviewed your position and are certain that you do not have an FBT liability. If your business provides cars, car spaces, employee discounts, reimburses private (not business) expenses, provides entertainment (food and drink) etc., then it is likely you are providing a fringe benefit.

If you have any questions in relation to these updated super changes, please do not hesitate to contact KPI Business Advisory and we'll assist you through the process of lodging your FBT return.

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