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What it is, how it applies and what you need to do as an Employer!
What is Fringe Benefits Tax?
- Fringe Benefits tax (FBT) is a tax paid by employers on certain benefits provided to their employees, or to their employees’ family or other associates.
- FBT is separate to income tax. It's calculated on the taxable value of the fringe benefit.
- As an employer, you must self-assess your FBT liability for the FBT year (1 April to 31 March). If you have an FBT liability, you must lodge an FBT return and pay the FBT you owe.
What is a Fringe Benefit?
A fringe benefit is like a payment to an employee, but in a different form to salary or wages.
There are different types of fringe benefits. Examples include:
- allowing an employee to use a work car for private purposes
- car parking
- paying an employee's gym membership
- providing entertainment by way of free tickets to concerts
- reimbursing an expense incurred by an employee, such as school fees
- giving an employee a discounted loan
- giving benefits under a salary sacrifice arrangement with an employee.
Not a Fringe Benefit.
Examples that are not fringe benefits are listed on the ATO website.
Who receives Fringe Benefits?
It's that time of the year again, Tax-Time it's just around the corner.
Don’t put it off or file it in the too hard basket, start now with our,
6 Top Tips!
- Getting ready is about getting your ‘house’, Business in order. Start by organising your paperwork. If you have a 'shoe-box' or bottom drawer full of unsorted papers now is the time to start sorting and filing.
- A stress-less tax time is all about good record keeping. You need to account for every dollar that comes in and out of your Business! Make sure you have the ‘evidence’ to back your claims!
- Missing copies of claimable receipts or expenses records, follow-up now to avoid panic later.
- Working from home, remote flexi arrangements, keep copies and record any related expenses for 'end of year' deductible claims.
- Have you checked if there are any Government incentives and initiatives for small Business? Have you received any concessions? If so, are there reportable implications!
- Do you have any questions regarding your Taxation obligations, not sure what a legitimate claimable expense is or are needing help with bookkeeping, payroll systems and processes! Contact Blackburn Accounting, we are 'Your Family Business Specialists'.
Yes, we have all heard of the carbon footprint, the total amount of our greenhouse gases emissions! What we generate with our actions, good and not so good.
But what about a digital footprint, what is it and what impact is it having! Are we having!
What is it?
Our digital footprint, also called our digital shadow or electronic footprint refers to the trail of data we create and leave when using the internet. Depending on our activities, some of us will have a small footprint while others will fit a size 16 boot.
- Impact!
Are you like Bigfoot, Sasquatch, the human-like mythical creature stomping along leaving a large digital footprint behind as you roam the global networks. How much information and content do you need to create and generate!
And not for the faint-hearted, these online pathways can be treacherous places inhabited by snakes and weasels, ready to pounce! Weasels, also known as cyber criminals, are ready to conduct targeted attacks and scams!
- Protection!
How do you help safeguard and protect yourself, your digital activities, from malicious cybercriminal attacks or misadventures?
There are some simple strategies you can adopt.
7 Ways to Best Manage Your Digital Footprint
- Undertake a search of yourself and review the results. This will give an idea of what information is publicly available. If there are any negatives, contact the site administrator.
- Set alerts. Once you have conducted the above consider setting up alerts to help keep closer track of any future online mentions.
It’s been stated many times before, ‘a glass half full’ or a ‘glass half empty!’
What do you see and say?
The optimist says, ‘the glass is half full’, while the pessimist says it's a ‘glass half empty’
This metaphor can be applied to many situations in life, personal, professional, the economy and indeed the way we approach and live our life.
There is no right or wrong approach!
Optimists usually look on the bright side while the pessimists are more likely to search for the black cloud behind every silver lining.
A glass half full is an attitude, a way of thinking and seeing the good things in a situation, the possibilities, rather than the bad or negative. For the optimist there is still water in the glass to drink! These optimists view a situation with hope, optimistically, for example, when a last-minute change in a schedule occurs, rather than being upset, this is seen as an opportunity to gain extra time.
The pessimist, (a glass half empty), sees there is water missing from what could otherwise be a full glass. They focus on the downside, see barriers and are stymied by obstacles. When they expect negative results, they fail to do the things that could have reduced or prevented those outcomes.
Whether an optimist or pessimist we all experience a range of emotions, both good and bad. And we all face challenges but it's how we respond to them that makes the difference. Every situation presents the opportunity to view it in a different light. Do you see only lemons or the opportunity to make them into lemonade!
The ATO is warning Business that pay contractors to provide certain services to lodge their taxable payments report (TPAR) for 2023.
The TPAR is used to report the payments made during the financial year to subcontractors or contractors. It is due on 28 August each year.
Be aware, from 22 March 2024, the ATO will apply penalties to those Businesses that haven’t lodged their TPAR from 2023 or previous years or have received three reminder letters about overdue TPAR.
If this is you, act now to avoid paying penalties.
Other – Outstanding Debts
From January 2024, the ATO has an external debt collection agency actioning tax cases they have referred.
This will apply to Taxpayers who haven’t responded to previous ATO contacts attempts or referral warning letters and are not engaged in debt repayment.
Don’t wait, contact the ATO or speak with our team at Blackburn Accounting asap.
Unsure of your responsibilities or what to do?
Need help!
Contact Blackburn Accounting we understand taxation matters,
or contact the ATO directly or check their website for further information.
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