How many days in fbt year

Large deductions were claimed for the upkeep and running of the boat. When looking at the activities of the business overall, the ATO determined that the director had purchased the boat primarily for their own private use.

As a result, they disallowed the deductions and the private use of the boat was a fringe benefit for the employees of the company. The company had to lodge an FBT return and pay the resulting FBT liability, as well as the income tax shortfall, interest and penalties. Previously, some employers were paying SG on the salary less any salary sacrificed contributions of the employee. Employers could choose whether or not to include the salary sacrificed amounts in ordinary time earnings OTE.

That is, some employers were reducing the amount of SG payable by excluding the salary sacrificed amounts from the ordinary time earnings calculation. Now, the SG contribution is 9. An issue that frequently causes confusion is the difference between the employee salary sacrificing in order to receive a fringe benefit and making an employee contribution towards the value of that fringe benefit.

To be an effective salary sacrifice arrangement SSA , the agreement must be entered into before the employee becomes entitled to the income i. Where an employee has salary sacrificed on a pre-tax basis towards the fringe benefit provided — laptop, car, etc. As a starting point, the taxable value of the fringe benefit is the full value of the expense paid by the employer.

The employee recognises that they have a reduced amount of salary and wages, and a non-cash benefit in the form of the fringe benefit. Where an employer provides:. The draft ruling is not finalised as yet but the ATO has stated it intends to apply the new definitions from 1 April If you provide car parking facilities to team members, it is important that you either:.

If you or your clients provide fringe benefits to staff or shareholders you must file regular FBT returns. There are set dates when you can change from quarterly filing the default to another method. Employers are required to file FBT returns quarterly unless they meet the criteria outlined in the Fringe benefit tax guide IR and then elect to file yearly returns.

For example, if you want to file your first annual return for the year ended 31 March , you must make an election by 30 June New employers must make their election by the last day of the first quarter after starting to employ.

For example, if you started employing on 31 October , you must have made an election by 31 December to be able to file a first annual return to 31 March Written by Vanessa Williams on November 3rd, The default FBT day starts from midnight unless an alternative start time, eg 9am, has been elected.

If a vehicle is taken home overnight, it will generally incur two days' FBT. An employee takes a work car home at 6pm for an early start. Electing an alternative start time applies to all motor vehicles an employer files an FBT return for. The elected start time will apply for at least two years.

In some situations, changes to the alternative start time during the two years may be considered. Email me when new posts are made to this blog Signup for blog notification.