FBT — Fringe Benefits Tax

The FBT year runs 1 April to 31 March (different from the income-tax year). The FBT rate is 47% on the grossed-up value of taxable benefits. Returns are lodged annually — due 21 May following the FBT year if self-lodging, or up to 25 June with a tax agent.

· Cars provided for private use (the most common — covered separately below) · Loans to employees at less than the benchmark rate · Expense payments — the employer pays a private expense for the employee · Housing benefits, board, accommodation · Living-away-from-home allowances · Entertainment — including some Christmas parties · School fees, club memberships, gym memberships paid by the employer

Providing a company car for an employee's private use is FBT-able. Two methods: statutory formula (20% of car cost × percentage of private use) or operating-cost (actual costs × private-use percentage from a logbook). Logbook usually wins for high-business-use vehicles. Electric vehicles below the luxury car threshold are currently FBT-exempt under the EV exemption — major saving.

· Minor benefits under $300 provided infrequently and irregularly · Work-related items provided primarily for work (laptops, tools, protective clothing) · Otherwise-deductible benefits — if the employee would have been able to deduct the expense if they paid it themselves, often FBT-free · Some salary-packaged super contributions

· Treating Christmas parties as fully deductible — entertainment FBT is complex, and getting it wrong costs both income-tax and FBT · Providing cars without keeping a logbook then defaulting to the worst method at FBT time · Reimbursing employees for personal phone bills without applying the otherwise-deductible rule correctly · Forgetting that an annual FBT return is required even when there's no FBT to pay (lodge nil)

Before introducing a new employee benefit — entertainment, cars, salary packaging, paid memberships. Five minutes of planning saves quarters of fixing. FBT returns are quoted as part of the company-tax engagement; standalone quotes available on request.