FBT Year-End Bookkeeping
31 March signals the end of the Fringe Benefits Tax (FBT) year. While it will generally fall to your Accountant to:
- Determine whether a fringe benefit has been provided by you to an employee or their associate (e.g. spouse)
- Determine whether an FBT exemption applies
- Determine the taxable value of your fringe benefits
- Ascertain your FBT liability
- Complete and lodge your FBT return…
…there are some things you can do to assist with this process. You may wish to collate/detail all the instances where a private expense of an employee has been paid for by the business. Additionally, if you, your bookkeeper, or one of your employees is responsible for maintaining the accounting software file (entering in and coding each transaction undertaken by your business) ensure that the file is in good order. From an FBT perspective this involves coding personal expenses paid by the employer to a general ledger account such as “employee benefits (FBT)”. This will alert your Accountant to the existence of a potential fringe benefit.
In respect of motor vehicle benefits, you should also take odometer readings at 31 March, and maintain a valid log book recording your usage of the vehicle over a 12-week sample period if using the Operating Cost Method. Provided there has been no substantial change in the usage of your vehicle (in terms of the mix between work and personal use) a new log book must be prepared if one was not prepared for any of the previous four years. Therefore, if you first kept a log book for the 2011/2012 FBT year, you are required to have kept a new log book for the current 2016/2017 FBT year.
This video provides information on how to meet your FBT obligations if you provide your employees with a business car.
Find out about:
- Types of fringe benefits
- Do you need to pay FBT?
- How to register for FBT
- How to report, lodge and pay FBT
- FBT exemptions and concessions