Fringe Benefits Tax 2022
With 31 March nearing its time to consider fringe benefits tax (FBT) again.
It’s good to know that the ATO has a few concessions in relation to Covid-19 and the fringe benefits rules.
Where a vehicle is provided to an employee for private use and the benefit is calculated on the operating cost method (logbook method) and the vehicle is garaged at or near the employee’s house and it was not driven at all (or only briefly to maintain the car) due to Covid-19 then the ATO will accept that the vehicle is not ‘held’ by the employer for FBT purposes for those days.
Secondly, you can also exclude operating costs that relate to that period. This may reduce the taxable value of the fringe benefit.
However, these concessions do not apply to novated leases or for cars valued on the statutory formula method.
If you provided emergency assistance to staff who could not travel or had to isolate due to Covid-19 restrictions, then expenses paid by the employer for food and temporary accommodation will be exempt from FBT.
The cost of RAT tests are also exempt where they are purchased for work purposes.
There are exemptions from 2 October 2020 if you retrain or reskill staff who have been or are about to be made redundant.
This retraining can be for a new career or for a new position in your firm.
We note that the ATO are performing FBT audits at the moment so if you have any questions please contact your Johnsons MME advisor, firstname.lastname@example.org.
Assistant Manager, Business Services