Fringe Benefits Tax

2024 Fringe Benefits Tax Return

To assist you in collating the information for the FBT return for the year ended 31 March 2024, please find below a list of information we generally require preparing the FBT return.

A. Motor Vehicles
The odometer reading as at 31 March 2024 for all motor vehicles which are owned or leased and which are subject to Fringe Benefits Tax will need to be recorded.  Please click here to obtain a copy of a form to assist you in recording these details.

Odometer records must be kept irrespective of which method is used to calculate the taxable value of the benefit.

The form should be signed and dated as soon as possible after 31 March 2024 by the employee who has use of the car, and should include details of any period during which the motor vehicle was available for private use. This includes any period where the vehicle is either garaged at or near the employee’s residence, as well as where the employee has custody of the vehicle. Please also advise us of any motor vehicles acquired (including date of purchase and acquisition cost) or sold (including date of sale and proceeds) during the FBT year.

Please note that the Fringe Benefits Tax liability can be reduced if any of the motor vehicles were unavailable for the private use of an employee between 1 April 2023 and 31 March 2024. Written documentation needs to be maintained to substantiate the days when a vehicle was not available for private use (for example, an email from the employee to the employer acknowledging that the vehicle and the keys were kept on the employer’s premises on specific dates).

Furthermore, from 1 July 2022 employers are not subject to FBT on eligible electric cars and associated expenses. If you are providing motor vehicle benefits that are eligible for this concession please advise. The eligibility requirements can be found at Electric Cars Exemption. Odometer records are still required as the exempt benefit is a reportable benefit that is required to be disclosed on the employee’s year end Payment Summary.

If you are using the operating cost method, please ensure that each employee has a valid logbook. If a new logbook has been commenced during the year ending 31 March 2024, please ensure it has been completed on or before 31 March 2024 and provide a copy of the full logbook to our office.

B. Entertainment 
Entertainment provided to an employee or an associate of an employee is subject to Fringe Benefits Tax. Entertainment provided to non-employees who are not associates of employees (e.g. clients, customers, suppliers, etc.) are generally not subject to Fringe Benefits Tax. An associate of any employee includes relatives, partners, trustees and beneficiaries. For a comprehensive listing of examples of entertainment expenses, please refer to Taxation Ruling 97/17: Entertainment by way of Food & Drink.

  • For each item of entertainment expense please provide details including:
    If electing to use the actual method – the name of employees/associates, number of employees and clients/customers/suppliers who were present.
  • If electing to use the 50/50 method – it can be assumed that 50% of the total entertainment expenditure relates to employee entertainment and the balance to non-employees.
  • If electing to use the 12 week register method – record the entertainment expenditure in a register (including the name of the employees/associate and the number of employees and non-employees who attended) and the percentage determined over the 12 weeks that is relating to employee entertainment is adopted for the FBT year.

C. Car Parking Benefits

FBT may be payable on car parking provided to employees where there is a commercial car parking station within one kilometre of the car parking spot provided and that the all day charge for parking exceeds the car parking threshold. For the 2023/2024 FBT year, the car parking threshold is $10.40. Furthermore, the Australian Taxation office (ATO) released a Taxation Ruling (TR 2021/2) which considerate when a parking station is considered a commercial car parking station for FBT purposes.

A commercial parking station is a commercial car parking facility which:

  • Is permanent.
  • Is not on-street parking.
  • Has car spaces available in the ordinary course of business to the public for all day parking on payment of a fee.

A parking facility will be a commercial car parking facility if it is operated by a car parking operator. This includes a parking facility that exists within another complex (such as an office, shopping centre or hospital) where the owner or lessor of that complex outsources the management of the parking facility to a car parking operator.

Where a parking facility is not managed by a car parking operator, may nevertheless be a commercial car parking facility if it displays other hallmark characteristics, such as:

  • has clear signage visible from the street advertising that paid parking is available
  • has mechanisms to control who can enter and/or exit the parking facility, or park at the facility. This may include boom gates, or ‘pay and display’ ticketing machines
  • charges more than a nominal fee (usually a significantly lower rate than the local market rate) for paid parking. This includes charging a user for parking which is not all-day parking (such as parking at an hourly rate).

Please refer to Taxation Ruling TR 2021/2: Car Parking Benefits for examples.

D. Other Benefits

You will need to review your records for any other benefits which may have been provided to employees and which may be subject to Fringe Benefits Tax. For example; loans, car parking, expense payments.

Where applicable, employee declarations need to be completed and signed by the lodgement due date of the FBT return (i.e. 25 June 2024). Please refer to the ATO webpage for details of employee declarations. Alternatively, please contact our office for further information.

Please provide details of these benefits as applicable.

E. Fringe Benefits Tax and GST

The taxable value of fringe benefits is the GST inclusive amount. It is important that the amount of GST paid on each benefit provided (including nil amounts) is included in the details supplied to us.

Entertainment provided to non-employees who are not associates of employees, are generally not tax deductible and not subject to Fringe Benefits Tax. The GST paid on these expenses is not eligible to be claimed as an input tax credit. Adjustment can be made where there has been any over claimed input tax credits once the FBT Return has been prepared. We will advise any adjustments required if necessary.

Input tax credits can be claimed for expense payment benefits provided to employees where GST has been paid. In order to claim any input tax credits, valid tax invoices must be held by the employer. It is therefore essential that tax invoices are obtained from employees for all expense payment benefits.

GST is also required to be remitted where employees contribute to costs and payments are made directly to the employer or an associate of the employer.

F. Reportable Benefits

To enable us to calculate the amount of reportable benefits to be included on the employees’ PAYG payment summaries for the year ended 30 June 2024, would you kindly advise which employee received the relevant benefit.

Please note that there are some benefits which are excluded from the reportable benefits requirements for which this detail is not required. The most common of these excluded benefits are meal entertainment and car parking benefits.

If individual employees cannot be specifically identified for a particular benefit, it is acceptable to apportion the benefit between employees on a reasonable basis.

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