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FBT year-end checklist



FBT year-end checklist

March 31 marks the end of the 2021/2022 fringe benefits tax (FBT) year which commenced 1 April 2021. It’s time now for employers and their advisors to turn their attention to instances where non-cash benefits have been provided to employees, and also where private expenses have been paid on their behalf.

Although it will generally fall to your accountant to prepare the FBT return, from your software file or other records, all of the instances where you have provided employees and/or their associates (e.g. spouse) with a potential fringe benefit may not always be apparent to them. To assist you in bringing these potential benefits to the attention of your accountant, following is a general checklist (non-exhaustive).

CARS

LOANS

Exemptions include where the loan is strictly related to meeting an employment expense (which must be incurred within sixth months of the loan being made). Exemptions also include loans made by private companies to employees who are also shareholders but the loan is Division 7A compliant.

DEBT WAIVER

An exemption applies where the debt in question is genuinely written off as a bad debt (as distinct from waived for employment or personal reasons).

HOUSING

The benefit may be exempt in the event that it relates to a remote area.

LIVING AWAY FROM HOME ALLOWANCE (LAFHA)

Strict exemption conditions can apply which your accountant can walk you through.

EXPENSE PAYMENTS

Exemptions include where the expense would have been otherwise deductible to the employee because it was work-related.

CAR PARKING

Various exemptions apply including where the benefit is for a disabled person, or provided by small businesses or certain non-profit employers, or the minor benefit exemption applies.

ENTERTAINMENT