The deadline for lodging fringe benefits tax (FBT) returns is fast approaching, and the Australian Taxation Office (ATO) is issuing a stern warning to businesses. Employers who provide fringe benefits to their staff must be extra cautious, as many common mistakes can easily be avoided but still attract significant penalties. So, with the clock ticking down to March 31, it\u2019s time to make sure everything is in order before the ATO comes knocking.<\/p>\n\n\n\n
For those who might not be familiar, fringe benefits are the extra perks employers provide to employees that go beyond their regular salary. This could be anything from the private use of a company car to gym memberships or even discounted loans, explains Yahoo Finance<\/a>. While these benefits are great for employees, they come with a tax implication for employers\u2014the Fringe Benefits Tax (FBT).<\/p>\n\n\n\n The FBT year doesn\u2019t follow the usual income tax year in Australia. It runs from April 1 to March 31, and at the end of this period, employers are required to calculate the taxable value of the benefits provided. This can be a bit tricky, as calculating these values involves more than just a simple tally\u2014it requires accurate reporting of all benefits and exemptions.<\/p>\n\n\n\n