How do I know if I need to pay FBT?

20 April 2011

If you’re not sure about whether you should be paying Fringe Benefits Tax, here are some key questions you should ask yourself:

  • Do you make vehicles owned by the business available to employees for their personal use?
  • Do you provide loans at reduced interest rates to employees?
  • Have you released an employee from a debt they owed?
  • Have you paid for, or reimbursed, an expense incurred by an employee?
  • Do you provide a house or unit of accommodation to your employees?
  • Do you provide employees allowances for living away from home?
  • Do you provide entertainment - food, drink or a form of recreation - to your employees?
  • Do any of your employees have a salary package arrangement in place?
  • Have you provided your employees with goods at a lower price than they are normally sold to the public?

Answer ‘yes’ to any of these and you are likely to be caught by FBT. For more information about your FBT reporting, contact us on 02 9957 4033 or email us for more information.

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This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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