The Fringe Benefit tax rate rose to 63.93% in April 2021, but nearly two years later, many businesses are yet to review the impact.
Before 2021, most employers used the single rate option to pay FBT on benefits provided at a flat rate of 49.25%. Have you reassessed the cost of increased FBT?
FBT is charged on a wide range of employee benefits, including company cars able to be used privately by employees right through to gift vouchers and flowers given to employees. Most employers don’t realise they have a large FBT bill until it’s too late. It can become even more painful if benefits have been given for a long time, as in addition to the FBT payable, penalties and use of money interest may also apply.
Review the impact of FBT on your business and ensure you don’t have backdated exposure. Talk to us about the impact of the 2021 rate rise and whether there are alternatives to offering employee perks, such as offering staff higher salaries or regular bonuses.
Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.