Detailed instructions for completing your Fringe Benefit Tax Return

company tax return

The Fringe Benefits Tax (FBT) return form is used to report various types of fringe benefits provided to
employees or their associates.

While the specific instructions for the 2023 FBT return form are not detailed in the provided knowledge,
generally, the types of benefits that can be reported include:

  • Car benefits
  • Debt waiver benefits
  • Loan benefits
  • Expense payment benefits
  • Housing benefits
  • Living-away-from-home allowance benefits
  • Airline transport benefits
  • Board benefits
  • Entertainment benefits
  • Tax-exempt body entertainment benefits
  • Car parking benefits
  • Property benefits
  • Residual benefits

Each of these benefits has specific rules and calculations associated with it. For example, car
benefits can be calculated using the statutory formula method or the operating cost method.
Expense payment benefits are where the employer pays for or reimburses an expense incurred by
the employee.

To accurately report these benefits, you would need to refer to the FBT return instructions for the relevant year, which provide detailed guidance on how to calculate the taxable value of each type of benefit and any exemptions or concessions that may apply, such as those for work-related items or compensable work-related trauma.

Here are the general steps to prepare an FBT return:

  1. Identify the types of fringe benefits provided to employees during the FBT year (1
    April to 31 March).
  2. Calculate the taxable value of each fringe benefit using the specific valuation
    rules provided by the ATO for each benefit category.
  3. Sum the taxable values of all fringe benefits provided to each employee to
    determine if their total taxable value exceeds the reporting threshold of $2,000.
  4. If the threshold is exceeded, calculate the employee's reportable fringe benefits amount (RFBA) and report it through Single Touch Payroll or on the employee's
    payment summary.
  5. Complete the FBT return form, ensuring that each type of fringe benefit is reported in the correct section and that the taxable values are calculated correctly.
  6. Lodge the FBT return with the ATO by the due date (usually 21 May, unless an extension is granted or a tax agent lodges on your behalf).
  7. Pay any FBT liability by the due date.

It is important to maintain proper documentation for each benefit provided to substantiate claims and support the calculations. Employers should also be aware of any changes to FBT legislation, such as the recent exemption for eligible electric cars from 1 July 2022, which can affect the taxable value of benefits.



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