The FBT year wound up on the 31st of March and it’s time to get organised for lodgements. Make sure you’re ready by going through our FBT checklist. Now is also a great time to get yourself organised for next years FBT.
FBT Checklist
Ask for odometer readings from employees on the 31st of March.
Keep a logbook for most cars. Use of the car will be taxed at 100% private use if one is not provided. (see here to find out if your vehicle is exempt)
Ask for receipts from employees toward costs of benefits you have provided, such as car washes, repairs & fuel.
Look through your ledger and see if there are any benefits you haven’t yet identified.
Ask employees for otherwise tax deductable declarations. (eg. Benefits your employees would be entitled to claim as an income tax)
Ask employees for living away from home declarations
Make sure you make & keep any required elections
Get Organised for Next Year
FBT can sneak up on us and the best way to deal with it is to think about next years FBT now. Creating systems to use throughout the year will make collecting documentation less of a hassle and help you save tax. Here are some ways you can make FBT easier:
It’s a good idea to review your salary sacrifice arrangements for the following FBT year now.
If you use the statutory method of calculating a vehicles taxable fringe benefit value, check your kilometres in early March. If you’re near a threshold, organising a couple of trips could save you on tax. Put a note in your diary now so you remember.
Make sure you have a system in place for employers to fill our log books when using company cars. An easy way to keep log books is through phone apps. (We recommend this one)
Gather receipts from employees for benefits regularly throughout the year and store them together.
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- Related articles:
- What Counts as a Fringe Benefit?