The Australian Taxation Office (ATO) is flashing the lights on fringe benefits tax (FBT) obligations for employers purchasing vehicles to provide as a staff benefit ahead of tax time.
Employers need to understand their FBT obligations if they offer staff benefits, and how to correctly report and pay FBT liabilities, which the ATO has outlined in various online guides.
Fleet Auto News has also shared recent stories about how to reduce the reportable FBT on your EV by charging at home, as well as a rundown of FBT changes for electric vehicles.
While your EV may be exempt from FBT, if you’re buying a ute for trade staff to use for work purposes, employees must limit private use to avoid FBT.
Limited private use doesn’t include weekends away camping or a road trip to the beach, the ATO has urged.
According to the ATO, work use includes:
- travel between home and work
- travel that is incidental in the course of employment duties
- non-work-related travel that is minor, infrequent and irregular
If you offer car benefits that attract FBT, you’ll need to lodge an FBT return by 21 May each year and pay any FBT owed by the due date. Keep in mind, the FBT year runs from 1 April – 31 March.
The ATO uses a range of third-party data sources, including motor vehicle registry information, to identify FBT non-compliance and may issue penalties if FBT obligations are not met.
Check out the ATO’s website for more information to help you understand how FBT works, what records you need to keep and to get the low down on FBT and cars.
