End of the 2009 / 10 FBT Year

The end of the 2009/10 Fringe Benefits Tax (FBT) year, 31 March, is rapidly approaching and that means, after this date, FBT returns will soon be due for lodgment.

Where we usually prepare the FBT return for your business, we ask that you collect all relevant FBT records relating to any benefits provided, such as:

• motor vehicles;
• car parking;
• entertainment;
• expense payments; and
• living away from home allowances;
• together with travel diaries, employee declarations, etc.

FBT rate

The FBT rate of tax for the year ended 31 March 2010 is 46.5%.

Minor benefits exemption

Fringe benefits with a taxable value of less than $300 may be exempt from FBT if they are provided on an irregular and infrequent basis.

For a benefit to qualify for this exemption, the benefit must have a GST-inclusive taxable value of less than $300.

Entertainment – what is it and when are you caught for FBT?

The following are some examples of what is entertainment:

• restaurants where family and clients are entertained;
• food and drinks provided at a staff social function;
• entertainment and drinks provided to employees on Friday nights;
• the cost of taking staff and their partners out to lunch; and
• the cost of taxis and limousines to and from entertainment venues.

An employer who has provided meal/ entertainment fringe benefits may work out the taxable value of their meal/ entertainment under one of these three methods:

• 50/50 split method;
• 12 week register method; or
• actual expenditure incurred on meal entertainment method.

Help us to help you

Click here to download our FBT information gathering form and return it to our office as soon as possible after 31 March 2010.

Or contact your Baker Affleck accountant on (07) 5538 3088.