FBT lodgment: help with your 2018 FBT return Presented by Phil Turnour , FBT Risk & Intell, Australian Taxation Office / 22 March 2018
Overview 1. FBT basics, rates and thresholds 2. In detail: how to lodge and pay 3. Tips and traps 4. What’s new with FBT…
Quick Code Google search QC 44834 3 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return
FBT basics, rates and thresholds
What is FBT? This video provides a quick introduction to FBT http://tv.ato.gov.au/ato-tv/media?v=bd1bdiunnecjbg 5 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return
First Question Who is liable to pay FBT? 1. Employers, or 2. Employees 6 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return
2018 FBT Year Basic concepts • The 2018 FBT year runs from 1 April 2017 to 31 March 2018. • FBT may apply when an employer provides a non cash benefit to any employee/s. • There are a number of rates and thresholds that are relevant for FBT purposes. • The FBT rate for the 2018 FBT year is 47%. • When working out your FBT liability you must gross-up the taxable value of benefits you provide to reflect the gross salary employees would have to earn at the highest marginal tax rate (including Medicare levy) to purchase the benefits after paying tax. a. Type 1 gross-up rate for GST-creditable benefits is 2.0802. b. Type 2 gross-up rate for benefits without entitlement to a GST credit is 1.8868. This gross- up date is always used for reporting on employee’s payment summaries. FBT rates QC 18846 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return 7
2018 FBT Year How to determine your FBT liability Step Description 1 Work out the taxable value of each fringe benefit you provide to each employee (different rules apply based on type of benefit). 2 Work out the total taxable value of all the fringe benefits you provide for which you can claim a GST credit. 3 Work out the grossed-up taxable value of these benefits by multiplying amount from step 2 by the type 1 gross up rate. 4 Work out the total taxable value of all those benefits for which you can't claim a GST credit (e.g. GST-free or input taxed). 5 Work out the grossed-up taxable value of these benefits by multiplying amount from step 4 by the type 2 gross up rate. 6 Total fringe benefits taxable amount = step 3 plus step 5 amounts 7 FBT liability = total fringe benefits taxable amount (from step 6) x FBT rate (47% for 2018 FBT year) How to calculate QC 43873 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return 8
FBT Rates and thresholds 2018 FBT Year 2017 2018 (current) FBT rate 49% 47% Type 1 gross-up rate 2.1463 2.0802 Type 2 gross-up rate 1.9608 1.8868 Payment Summary Reporting Threshold (grossed up value) $3,921 $3,773 FBT Exemption Capping Threshold (for PBIs and HPCs) $31,177* $30,000* FBT Exemption Capping Threshold (for public and non-profit hospitals and $17,667* $17,000* public ambulance services) FBT Rebate Capping Threshold $31,177* $30,000* 49% 47% FBT Rebate Rate *salary packaged meal entertainment and entertainment facility leasing expense benefits capped at $5,000. FBT rates QC 18846 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return 9
FBT Rates and thresholds 2018 FBT Year • Statutory benchmark interest rate 5.25% • Car parking threshold $8.66 • Private use of motor vehicles other than cars - Engine capacity up to 2,500 cc - 53 cents per km - Engine capacity over 2,500 cc - 63 cents per km - Motorcycles - 16 cents per km • Indexation rates for non-remote area housing benefits - TD 2017/6 • Reasonable food and drink expenses - TD 2017/5 • Record keeping exemption threshold - $8,393 • For more information visit our Fringe benefits tax – rates and thresholds (QC 18846). FBT rates QC 18846 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return 10
In detail: how to lodge and pay
Key Dates 2018 FBT Year Date Description 21 May 2018 Final date for appointing a tax agent for FBT role. Lodge and pay FBT return for self preparers. Final date for states and territories that want to nominate an eligible state or territory body as an employer, or vary, or revoke a previous nomination. 28 May 2018 Payment due if under the lodgement program. 25 June 2018 Lodge FBT return for tax agent. Lodgement and payment QC 43875 & QC 34594 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return 12
When to lodge and pay Register for FBT • Employers should register for FBT once they have determined they are providing fringe benefits and have to pay FBT. Registrations options are (QC 27382): - online at https://register.business.gov.au/; or - call 13 28 66, select option 3 and then option 3 again; or - through a registered tax agent; or - by lodging your annual FBT return; - lodge an Application to register for fringe benefits tax using Business or Tax Agent Portals or by fax or mail. QC 27382 13 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return
When to lodge and pay What to do if your FBT liability is NIL • Cancelling registration when no further FBT liability for future years: a) Lodge the annual FBT return (QC 43880) or Fringe benefits tax - notice of non-lodgment (QC 16542) and you advise you do not expect to lodge FBT returns for future years; or b) Call 13 28 66, select option 3 and then option 3 again; or c) Using the Business or Tax Agent Portals by selecting FBT subject ‘Cancel FBT’. • You don’t need to lodge an FBT return if you are registered for FBT and your fringe benefits taxable amount during the FBT year is nil and you did not pay FBT instalments. Instead, lodge a Fringe Benefits Tax – notice of non-lodgment. • Registered tax agents can use the FBT non-lodgment advice (registered agents) form and lodge using the portal. 14 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return
How to lodge and payment options More information available • You can lodge online with Standard Business Reporting (SBR)-enabled software. • You can lodge a paper return – returns can be downloaded from ato.gov.au (in the forms and instructions section – QC 54571 and 54573). • We offer a range of payment options both in Australia and overseas: - BPay - direct credit - direct debit - others on website, refer to How to pay (QC 50295 & 50296). www.ato.gov.au/FBT2018 15 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return
Second question How are you intending to lodge your 2018 FBT return? 1) Online with Standard Business Reporting 2) Paper 3) Uploading paper form via the portal 4) Tax Agent 16 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return
Tips & Traps
Things to know Types of fringe benefits • Understand when you are providing fringe benefits, look at the list of possible fringe benefits here: ♦ Car ♦ Loans ♦ Debt waivers ♦ Expense payment ♦ Housing ♦ Board ♦ Property ♦ Living away from home allowances ♦ Residual ♦ Car parking ♦ Meal entertainment ♦ Income tax exempt body entertainment • Each category has specific valuation rules. • Have policies, procedures and systems in place to record the provision of benefits. • Make sure you’ve received any employee declarations before lodgment. (QC 17516) • Declarations can be electronic. See sub-chapter 4.9 of FBT: A Guide For Employers. • Be aware of the record keeping requirements. 18 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return Types of fringe benefits QC 43852
Things to know Some tips… • Ensure you satisfy all conditions before claiming an exemption or reduction • Understand the interaction of FBT, GST and income tax (employee contributions are assessable income and GST inclusive). • If you don’t need to lodge an FBT return and you are registered for FBT, complete a Fringe benefits tax - notice of non-lodgment (QC 16542). • Self preparers who need additional time to lodge or pay should contact us before the due date: – Using the Business Portal select “Additional time to lodge - deferral request” from the new message options and “Payment arrangement request” – Call 13 28 66, then select option 3 and then option 3 again for lodgment deferrals – Call 13 11 42, for payment arrangements. FBT instalment payers should lodge all quarterly activity statements prior to lodging an FBT return Read the instructions QC 54573 19 UNCLASSIFIED – FBT lodgment: help with your 2018 FBT return
Recommend
More recommend
