Fringe benefits are benefits which are provided by employers to their employees in respect of their employment. It is usually in the form of non-monetary benefits, such as the use of a company car or a reduced interest rate on a home loan. Fringe benefits tax is a tax that is paid by employers on the value of the fringe benefits provided to employees. Our Sydney chartered accountants and Sydney accountants assist employers:
- Determine whether a fringe benefit exists
- Determine what category the fringe benefit might fall into since there are different rules for valuing the benefit
- Determine the taxable value of the fringe benefit
- Determine the total fringe benefit tax liability
Seeing a Sydney chartered accountant or Sydney accountant is crucial when it comes to FBT.
There may be a substantial tax benefit to employees who receive fringe benefits, rather than an increased income to facility extra benefits. There are however a number of things which are not considered to be fringe benefits. The following is a brief list of some benefits that are not considered fringe benefits:
- Living Away From Home Allowances (partially exempt);
- Employee relocation expenses;
- Superannuation;
- Minor benefits (less than $300 in value) incurred infrequently and irregularly;
- Protective clothing;
- Tools of trade;
- Briefcases;
- Mobile phones;
The calculation of fringe benefits tax liabilities can be quite complicated. Arrange a consultation with one of our chartered accountants or accountants or tax agents today to ensure that you are meeting all your tax requirements in relation to FBT. Our chartered accountants have assisted individuals, companies and employers across Sydney, including in suburbs such as Parramatta, Penrith, Bondi Junction, Gordon, Miranda and Liverpool.
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