Pandemic benefits can incur FBT

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The ATO has sent out a warning to those employers who have offered incentives to their employees during the pandemic. They might be drawn into the FBT net for the first time, so be prepared.

Examples include pets, gym memberships, event tickets or non-cash vaccination incentives or rewards are some of the areas highlighted, as is allowing your employees to use a company car for private use. 

If you have paid for items that ultimately allowed your staff to work effectively from home then the ATO assistant commissioner Michelle Allen says that it might be worth checking in to see whether these are identified as a fringe benefit. 

If you are unsure or a little concerned about FBT, then do not hesitate to get in touch with the us at Glance Consultants. We can look through the details to ensure that you are compliant and safe from any complications that may come through unintentional tax evasion with the ATO. 

We know that you likely have a lot on your plate, so the last thing you will be wanting is penalties imposed on you for FBT non-compliance or incorrect/late FBT returns. The ATO do have third-party data sources that they use to identify fringe benefit acquisitions in a business and have come out to claim that they will be cracking down on non-compliance this year. 

Know that you can claim deductions for the cost of providing fringe benefits in most cases and can claim GST credits for items provided. It’s a matter of knowing what you need to declare and how you should go about making these claims. 

If you believe that you might be liable for FBT this year for the first time, then you will need to register before reporting, lodging and paying your tax. 

You have until the 27th June 2022 if lodging these through a tax professional such as ourselves, otherwise return dates have passed for those lodging their own returns, back on the 23rd May 2022. 

By understanding what is identified as a fringe benefit and determining whether or not the incentives or rewards that you have provided your employees qualify as such, then you are able to make informed decisions. Get in touch with us at Glance Consultants to learn more about FBT.

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