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FBT issues on ATO radar

In this year’s updated list of ‘What attracts our attention’, we have six items that specifically relate to fringe benefits tax (FBT).

What attracts our attention in relation to FBT includes:

  • failing to report car fringe benefits, incorrectly applying exemptions for vehicles, or incorrectly claiming reductions for these benefits
  • mismatches between the amount reported as an employee contribution on an FBT return compared to the income amounts on an employer’s tax return
  • claiming entertainment expenses as a deduction but not correctly reporting them as a fringe benefit, or incorrectly classifying entertainment expenses as sponsorship or advertising
  • incorrectly calculating car parking fringe benefits
  • not applying FBT to the personal use of business assets provided for the personal enjoyment of employees or associates
  • not lodging FBT returns (or lodging them late) to avoid or delay payment of tax.

To view the ATO article in full, click here.

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