On 31 March 2021, the Fringe Benefits Tax (FBT) year ends. A fringe benefit is a ‘payment’ to an employee or an associate (an associate is someone related to you such as a spouse, child or even a friend), but in a different form to salary or wages. A benefit might be as simple as hosting a work Christmas party, providing car parking, using a work vehicle, or providing the goods or services of the business at a reduced rate to what the public pay.

We have outlined the key issues for employers this FBT year in the article FBT 2021: What you need to know. This article covers:

• COVID-19 assistance and benefits
• Motor vehicle problem areas
• ATO ‘red flags’:
  • Where deductions claimed don’t match what is reported for FBT purposes
  • Mismatched FBT and income tax amounts
• When business assets are used personally by owners and staff
• Not lodging FBT returns
• Salary sacrifice problem areas
• Car parking under scrutiny
• Housekeeping essentials