Fringe Benefit Tax (FBT) Updates April 2016

At the beginning of 2016, the ATO reminded employers about the Fringe Benefit Tax (FBT) advantages that may apply to eligible Business Owners, such as office event and work-related electronic devices tax deductions.

Further details include:

 FBT implications over the Festive Season

 The ATO reminded employers over the previous Festive Season that employers who provide entertainment to their employees, both during the Festive Season or at any other time of the year, should remember to think about the following:

  • When providing food, drink or recreation may be considered ‘entertainment’
  • Whether the entertainment is subject to Fringe Benefits Tax
  • The methods available for valuing entertainment fringe benefits

Depending on the sort of entertainment you provide to your employees, there may be different FBT implications.

Talk to your tax adviser about the entertainment you provided to your employees over the Festive Season – Did you have a party? Did you give your employees any gifts?

 

  • FBT exemptions for work-related electronic devices

From 1 April 2016, Small Business employers (with turnover of less than $2 million) will be able to provide your employees with multiple electronic devices to use for work without incurring a Fringe Benefits Tax liability.

You can provide:

  • Mobile Phones
  • Tablets
  • Laptops
  • Calculators
  • GPS Navigation Receivers.

Note that providing these devices may be a benefit in addition to or part of your employee’s salary or wages package.

If you are planning on providing multiple devices to your employees, talk to your tax adviser first to ensure you properly comply with the FBT rules.

If you would like to discuss these changes and how they effect you further please contact us below:

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