The Fringe Benefits Tax (FBT) year comes to an end today and it is time to review any non-salary benefits provided for your employees.
Some of the changes this year includes:
- Electric Vehicles
- Eligible zero or low emissions vehicle first held and used from 1 July 2022 are exempt from FBT, including novated lease arrangements;
- Car Parking
- The ATO has expanded the definition of a ‘commercial’ car park. This captures a wide range of facilities including suburban shopping centres. Fortunately, since 1 April 2021 the small business car parking exemption has applied to businesses with an aggregated turnover of less than $50m; and
- COVID-19 Testing
- Confirmation that employer-provided COVID-19 tests are exempt from FBT under the otherwise deductible rule.
The ATO estimate a $1 billion FBT gap and we expect an increased audit activity for the coming periods.
The areas of concern:
- Cars that are used or available for private purposes being treated as 100% business use;
- Invalid logbooks including not keeping odometer readings each year; and
- Not considering private usage of eligible commercial vehicles such as utes.
Please also take note of your odometer readings today.
We encourage our clients to carefully complete the following checklists and return by 30 April 2023.
