Any non-cash benefit provided to employees could attract fringe benefit tax (FBT). Be it a small business where benefits like a motor vehicle is provided to owner-employee, or a large business where expenses like meals or entertainment are covered, they all attract FBT. Given that there are some specific exceptions under the FBT laws, it is very important to plan the benefits so as to avoid incurring any excessive FBT. As a broad indicator of the impact FBT could have on your business, if you spend $100 on a meal for an employee and claim it in business, you could be up for another $96 of FBT on top. This is also a growing area of reviews and audits for the ATO, thus it needs specialist and tailored advice.
Back to Tax Compliance