Fringe Benefits Tax Update 2024

As the curtain draws on the current Fringe Benefits Tax (FBT) year, now is the time for you, as business owners, to take stock of potential FBT issues before the deadline on 31st March.

This Fringe Benefits Tax Update 2024 covers important aspects including motor vehicle benefits, minor benefit exemptions, and the importance of professional advice for businesses.

What is FBT?

Fringe Benefits Tax applies to non-cash benefits provided to employees or deemed employees. FBT spans a diverse range of benefits including but not limited to:

• motor vehicles
• Christmas party costs
• business dinners
• telephone expenses
• health and wellbeing programs
• and more

Motor Vehicles and Fringe Benefits Tax

Motor vehicles, in particular, merit careful scrutiny.

If an employee takes a company car home overnight, then a FBT liability may arise even if the only use is home to work travel and business related journeys.

Notably, exemptions exist for commercial vehicles and 1-tonne utilities, offering a reprieve for businesses with such assets.

Where there is extensive business travel in a vehicle, we recommend that you request your employee to complete a logbook for a twelve week period.

This logbook can be in an electronic form or in a traditional logbook. Please check the date of any logbooks as they are only relevant for five FBT years. As such any current logbook finalised prior to 31 March 2019 is no longer acceptable and a new logbook is imperative.

Minor Benefit Exemption

The minor benefit exemption, applicable for benefits under $300 (GST inclusive) can offer relief from FBT in some situations.  However, where the minor benefit exemption is used for entertainment then these costs are not tax deductible and no input tax credits can be claimed.

Seek professional advice

Given the intricacies of Fringe Benefits Tax regulations, businesses are strongly encouraged to seek professional advice.  FBT rules are complex, and any uncertainties or concerns should prompt a discussion with our office.

As the FBT year concludes, a proactive approach to understanding and addressing potential issues ensures not only compliance but also maximizes the benefits available to businesses.

For any FBT-related concerns, reaching out to our Albury or Wangaratta offices will ensure that you navigate these complexities.