How does a bookkeeper help businesses with Fringe Benefits Tax (FBT)?

Fringe Benefits Tax (FBT) is a tax that employers pay on benefits provided to employees in addition to their salary or wages. This includes any non-cash benefits, such as a company car, private health insurance, or entertainment expenses.

FBT is calculated on the taxable value of the benefits you provide and is separate to income tax.

The FBT year runs from 1 April to 31 March each year.

Bookkeepers can help businesses with their FBT obligations by:

  • Maintaining accurate records. We can help you keep track of all the fringe benefits you provide to employees each year including the type of benefit, its value, and who received it.

  • Classifying fringe benefits correctly. Different types of fringe benefits are subject to different FBT rules and gross up rates. We can ensure that each benefit is classified correctly.

  • Calculating FBT liability. Each fringe benefit has a taxable value, and we can help calculate your liability accurately.

  • Advising on FBT compliance and working with your Accountant in the preparation of your FBT return. We can help you keep up-to-date with FBT rules and regulations, and provide advice on how to stay compliant. This could involve recommending changes to policies and procedures or suggesting ways to minimise FBT liability.

MORE INFORMATION

The Australian Taxation office has full details on your obligations, find out more here .

Contact us to find out more about how we can help with your FBT reporting.

Kellie Forster