What’s the Fringe Benefits Tax (FBT) and How Does it Impact Me?
Date posted: Wednesday, February 19, 2014
As an employer, you are required to pay a tax on non-cash (or fringe) benefits provided to employees. These benefits include services and privileges allowed to employees as well as physical goods.
What is classified as a ‘fringe benefit’?
To put it simply, benefits provided to an employee because they are an employee are considered to be a ‘fringe benefit’. This includes giving employees:
- Company cars for personal use
- A cheap or discounted loan
- Private health insurance
- Entertainment in the form of meals or recreational activities
What is not classified as a ‘fringe benefit’?
Employers are not required to pay FBT on the following goods and services:
- Employee relocation expenses
- Superannuation
- Work related items such as protective clothing and tools
How does this impact me?
Whether you’re an employee or employer the Fringe Benefits Tax impacts you. While employers pay the FBT, fringe benefits must also be reported on an employee’s PAYG payment summary and tax return.
Still have questions? You can find out more by giving us a call, sending us an email or booking in for a visit. We specialise in servicing individuals and businesses in the South Eastern Suburbs within the Cardinia Shire.
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Get Pakenham Taxation to Track Your Lost Super
Date posted: Thursday, May 23, 2013
Here is a little fun fact for you all. Did you know that there is $17 billion in lost or unclaimed super in Australia? Are you one of many Aussies who has no clue where your super is? There could be money out there that belongs to you and you don’t even realise it. At Pakenham Taxation + Accounting we’re happy to help you track it down and we know how. So if you think you’re one of those people who has lost or unclaimed superannuation, then give a holler and we’ll get our Sherlock Holmes on.
Sign up with Pakenham Taxation + Accounting to receive tips on how to better manage your personal and business tax.
How to Avoid Tax Crime
Date posted: Thursday, May 9, 2013
We’re often impressed by people’s creativity when it comes to attempting to reduce their tax fees. The ATO however, is not always entertained and some individuals and businesses who take a DIY tax reduction approach can find themselves in trouble with the law. A DIY approach to tax reduction can be disastrous and costly. There is no substitute for professional advice. No matter how good you are at making investment decisions, a superior level of taxation management expertise is recommended, as the consequences without can be costly. There are perfectly legal ways to reduce your tax and keep yourself and your business out of the tax-crime-woods. As Pakenham’s leading taxation management hub, we’re able to provide solutions in these basic tax strategy areas:
- Earn tax-free income
- Tax advantage of tax credits
- Defer taxes
- Maximise your tax deductions
- Reduce your tax rate
- Shift Income to others
- Take advantage of your tax exemptions
Be sure to give us a call to make an appointment, for more information on tax saving strategies.
