FBT Time

A few refresher points:-

Any employer who has any FBT liability for the current period must lodge a return.

If the fringe benefits taxable amount for the FBT year is nil, a “non-lodgement” form can be completed and lodged by the time the return is due.

FBT rate is 49% for 2015-16

A company director is considered to be an employee for FBT purposes.  A director of a company is typically an employee for FBT purposes.  This can even be the case where the director has not been renumerated with salary and wages.

When a company provides a benefit to a director in their capacity as an employee, who is also a shareholder, professional help will be needed.  How many directors use holiday home that is owned by that company or family trust for free?

Refer to Article Fringe Benefits Tax – Company Holiday Home

Car Fringe Benefits

The car fringe benefits rules only apply if the vehicle provided to the employees satisfies the meaning of a “car”.  Reduce car base value by 1/3 provided that the car has been held by the employer for at least four full FBT years.

Meal entertainment for FBT purposes excludes any expenditure in relation to recreation.