FBT Season Strategy: Compliance and Record-Keeping Essentials
As the deadline for the Fringe Benefits Tax (FBT) season approaches, staying organised and on track is essential during this busy period. If you’re looking for a refresher on the basics, our quick guide on Understanding Fringe Benefits Tax is a great starting point.
Navigating the FBT Season
Assessing Liability
Lodgment and Payment
Note: As tax agents, we receive a 4-week extension of time to lodge FBT returns on our clients’ behalf.
Updating Registration Status
If you’re registered for FBT but don’t need to lodge this year, inform the authorities by completing the Notice of non-lodgment to avoid unnecessary follow-ups.
Record-Keeping Essentials
For FBT purposes, maintaining accurate records is non-negotiable. Your records should make it clear how you’ve calculated the taxable value of benefits and show any exemptions or concessions you’re claiming. Important documents include:
- Calculations and worksheets
- Employee declarations and elections
- Invoices, receipts, and bills of sale
- Lease agreements, travel diaries, logbooks, and odometer readings
- The date and nature of the entertainment provided
- Recipients of the entertainment
- The cost and location of these events
Obtaining Records from Employees
- Declarations
- Invoices and receipts
- Copies of lease agreements
- Travel diaries and logbooks
Record Keeping Exemption Arrangements
If eligible, you can ease the process by calculating your liability based on the total taxable value of fringe benefits provided in a previous year, reducing the need for detailed records every year. Still, you’ll need to report the value of these benefits to your employees.
Visit this ATO link to check for eligibility for the arrangement
Records Retention
Should you require assistance with Fringe Benefits Tax, MKG Partners stands ready to support you. Our expertise lies in tax strategy and regulatory compliance for businesses across the board. With our deep understanding and experience, we’re well-equipped to help you fulfill every aspect of your FBT requirements. Reach out to us now to discover more about our offerings and how we can aid in managing your tax responsibilities effectively.
