Fringe Benefits Tax: What You Need to Know for Your Business

At Tax Accounting Adelaide, we proudly offer Fringe Benefits Tax (FBT) returns and provide expert guidance on FBT. With our specialised training in this area, we can confidently manage your FBT return services to ensure everything is handled accurately.

FBT: A Commonly Misunderstood Tax 

Although Fringe Benefits Tax has been around since 1986, it remains a confusing topic for many small to medium-sized business owners. Unfortunately, even many tax agents are not fully up to date with FBT, which can lead to risks for businesses if not properly managed.

The ATO’s Increased Focus on FBT

The Australian Taxation Office (ATO) is becoming increasingly focused on closing the gap between what is collected and what should be collected in FBT from small businesses. This “tax gap” has prompted the ATO to allocate more resources to ensure that all businesses comply with FBT obligations. Therefore, it’s more important than ever to stay informed and proactive about your business’s FBT risks.

Why Should You Care About FBT?

If you’re a smart business owner, you need to be aware of the potential FBT risks that may apply to your business. Failing to comply with FBT can result in costly penalties. We want to help you ensure that your business stays on top of this issue.

We offer a comprehensive service that includes:

  • FBT Risk Check: We can assess your current FBT practices to determine if you are at risk of non-compliance.
  • Improving Awareness: We’ll help you understand which areas of your business may be subject to FBT, including cars, entertainment, employee expenses (e.g., mobile phone bills, expenses reimbursed), gifts, housing, and property benefits.
  • Reducing FBT Risks: We’ll provide practical solutions to limit your exposure to FBT.
  • Closing the Gap: If you believe your business may have underpaid FBT in previous years, we can help you identify ways to correct past returns and reduce your risk.

 

Minimise Risks and Ensure Compliance 

Ensuring your business is compliant with FBT regulations and aware of potential risks is crucial. At Tax Accounting Adelaide, we are small business experts who can also assist in the preparation and lodgement of your FBT tax return.

Book a call back with us today and make sure your business is doing everything right. Our expert services are here to help you navigate the complexities of Fringe Benefits Tax and minimise potential tax risks.