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  • FBT issues on our radar

    If you're an employer, it pays to know what we're looking out for and benefits you need to report so you can avoid making costly mistakes or attracting our attention.

    In this year's updated list of What attracts our attention, there are six items that relate to fringe benefits tax (FBT) including:

    • failing to report car fringe benefits, incorrectly applying exemptions for vehicles or incorrectly claiming reductions for these benefits
    • mismatches between the amount reported as an employee contribution on an FBT return compared to the income amounts on an employer's tax return
    • claiming entertainment expenses as a deduction but not correctly reporting them as a fringe benefit, or incorrectly classifying entertainment expenses as sponsorship or advertising
    • incorrectly calculating car parking fringe benefits due to
      • significantly discounted or nil market valuations
      • using non-commercial parking rates
      • not having adequate evidence to support the calculated rates
    • not applying FBT to the personal use of an organisation's assets provided for the personal enjoyment of employees or associates
    • not lodging FBT returns (or lodging them late) to delay or avoid payment of tax.

    Being mindful of these FBT matters will help you to stay off our radar and stay on track with your FBT obligations.

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    Last modified: 19 Dec 2019QC 58697