As another Fringe Benefits Tax (FBT) year draws to a close, here are the latest updates and reminders of everything FBT!
Eligible electric vehicle exemption for 2023
A notable change to FBT for the 2023 year has been the introduction of the Electric Vehicle (EV) Car Exemption. This allows EVs provided to employees for private use to be exempt from FBT. That's right NO Tax!
It should be noted the criteria for the EV exemption are below:
- The EV must first be held and used after 1 July 2022;
- The EV must be used by a current employee or associate and cannot be used by a past or future employee; and
- The EV must never have had luxury Tax paid on the supply or importation of it. With the luxury car Tax threshold for fuel efficient vehicles for the 2023 financial year being $84,916, all new EVs must be cheaper than this amount.
Common areas for fringe benefits
There are a variety of benefits subject to fringe benefits Tax and we have outlined the common benefits below.
- Car fringe benefits - do you provide a vehicle to an employee?
- Entertainment related fringe benefits - where was your Christmas party?
- Expense payment fringe benefits - may include contributions for mobile phone or private health insurance; and
- Accommodation and relocation related fringe benefits - do your employees work away?
Please note that the above list is not exhaustive and there are a large number of additional benefits not mentioned above. If you provide ANY benefit to an employee, please contact us.
When is your FBT return due?
The due date for lodgement of FBT returns is 22 May.
Please note, where lodging via a Tax agent an extension is granted to 25 June.
Payment of any FBT liabilities are also due on the due date of lodgement.
If you have any questions surrounding fringe benefits and lodgement, please do not hesitate to contact your trusted Hall Chadwick advisor.
