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Fringe Benefits Tax (FBT)
Fringe Benefits Tax (FBT) is something every Australian business offering non-cash perks to employees needs to consider. While these benefits are great for attracting and keeping talent, they come with specific tax obligations that need to be managed correctly.
At Carbon, we’re here to simplify FBT for you. Our expert tax accountants will help you navigate the complexities, ensuring compliance while finding ways to maximise your savings.
FBT can be tricky, with a range of exemptions, concessions, and calculation methods. We work alongside Australian businesses to:
Identify and assess fringe benefits provided to employees
Accurately calculate FBT liabilities
Explore strategies to minimise your FBT obligations
Ensure compliance with ATO regulations
Prepare and lodge your FBT returns with ease
Tailored FBT solutions for your business
No two businesses are the same, and your FBT obligations shouldn’t be treated with a one-size-fits-all approach. We tailor our advice to help you:
- Optimise your employee benefits package
- Set up effective salary packaging
- Make use of exemptions and concessions that work for your business
- Balance employee satisfaction with tax efficiency
Our team stays up to date with the latest ATO rulings, ensuring your FBT strategy remains compliant and always optimised.
Proactive FBT planning and strategy
Managing FBT effectively means looking beyond basic compliance. Our proactive approach includes:
- Annual FBT health checks to keep your approach on track
- Strategic planning for future employee benefits
- Integrating FBT considerations into your overall tax and business strategy
- Ongoing reviews to make sure your FBT plan stays efficient and cost-effective
We’ll work with you to develop an FBT strategy that aligns with your business goals and minimises tax liabilities—because managing tax is about planning, not just ticking boxes.
Fringe Benefits Tax calculator
Unsure if you’re liable for FBT? Use our FBT Checklist Calculator to quickly assess your situation. This simple tool helps you determine whether your business is subject to FBT, ensuring you’re on the right track with your obligations.
Ready to find out where you stand? Enter your details below and get started.
FBT support forsmall and medium businesses
Small and medium businesses (SMEs) often face unique FBT challenges. At Carbon, we understand what it takes to manage these obligations efficiently, without overextending your budget. We help SMEs:
- Implement cost-effective benefit programs
- Manage FBT liabilities within financial constraints
- Identify and apply exemptions and concessions often overlooked by others
Frequently Asked Questions
Fringe Benefits Tax (FBT) is a tax paid by employers on non-cash benefits provided to employees. These benefits can include things like company cars, entertainment and other perks offered in addition to salary.
Common benefits subject to FBT include:
- Car fringe benefits
- Car parking fringe benefits
- Entertainment and recreation
- Low interest loans
- Living away from home allowances
- Private health insurance
FBT is calculated on the taxable value of the fringe benefits provided. The rate for the 2024-25 FBT year is 47%. Different valuation methods may apply depending on the type of benefit.
Yes, even if you provide small or infrequent benefits, you may still be required to pay FBT. It’s important to assess all benefits provided to your employees, no matter how minor, to determine your FBT obligations.
Yes, several exemptions and concessions are available, including:
- Minor benefits exemption (for benefits under $300)
- Work-related items exemption (e.g., mobile phones, laptops)
- Certain car parking benefits
Strategies may include:
- Providing cash allowances instead of benefits where appropriate
- Utilising available exemptions and concessions
- Implementing effective salary packaging arrangements
- Keeping detailed records to maximise claims
The FBT year runs from 1 April to 31 March. FBT returns are generally due by 21 May each year, unless you have a tax agent like Carbon managing your return.
Salary packaging can help employees reduce their taxable income, but it may increase the employer’s FBT liability. Effective structuring of salary packages is crucial to balance these factors.
You should maintain records of:
- The type and value of benefits provided
- How the taxable value was calculated
- Any employee contributions
- Any declarations or other documentation required for specific benefits
We offer comprehensive FBT services to help your business navigate this complex area of taxation:
- We conduct thorough assessments to identify all fringe benefits provided by your business
- Our experts calculate your FBT liability accurately, ensuring you don’t overpay
- We develop tailored strategies to minimise your FBT obligations while maintaining attractive employee benefits
- Our team stays up-to-date with the latest ATO rulings and legislative changes, ensuring your FBT approach remains compliant and optimised
- We prepare and lodge your FBT returns, taking the stress out of compliance
- We provide ongoing advice and support, helping you make informed decisions about employee benefits and their tax implications
As a business owner, you want to reward your employees while keeping your tax obligations in check. Let us help you create an FBT strategy that optimises your employee benefits and minimises your tax liability. Get in touch with us to learn how we can save you time, stress and money on your FBT.
FBT Case Study
A growing Australian business approached Carbon, struggling to manage their FBT obligations as their team expanded and employee benefits became more complex. Carbon’s FBT specialists quickly stepped in, reviewing their benefits and ensuring compliance with ATO regulations. By accurately calculating FBT liabilities and identifying potential exemptions, we were able to reduce their tax burden and streamline the reporting process. This allowed the business to focus on growth, knowing their FBT was in expert hands.
Ready to optimise your FBT strategy?
Fringe Benefits Tax (FBT) How Carbon can help
Download our FBT Guide eBook for free!
Contact us today Book a free consultation
To find out more about our FBT services and learn how they can benefit your business, submit your details below and our accountants will be in touch.
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