FRINGE BENEFIT TAX

LET US HELP MINIMISE YOUR FRINGE BENEFIT TAX EXPOSURE

Most benefits given to employees other than their salary or wages are potentially fringe benefits.  There are four main groups of taxable fringe benefits:

• Motor vehicle available for private use
• Free, subsidized or discounted goods and services
• Low-interest loans
• Employer contributions to sick, accident or death benefit funds, superannuation schemes and specified insurance policies

If these benefits are enjoyed or received by employees as a result of their employment the benefits are liable for FBT.  You will have to file a quarterly FBT return and make any payments due.  At Leech & Partners Ltd, we keep up to date with all of the rules and legislation governing FBT, and have the skills and knowledge to advise you on the best structure for your company to ensure that you are not paying excessive amounts of FBT.  We can also prepare your FBT Returns for you.

INCREASE YOUR EXPOSURE?

In a limited set of circumstances it may be advantageous to increase your FBT exposure.  For instance, it is possible that the rate of FBT applying to the benefits provided by your company could be as low as 15%, whilst the company will receive tax relief at 33%.  If fringe benefits are taken instead of small salaries, it is possible that the tax reduction is from 39%, the highest rate of personal income tax, to 15% the lowest rate of FBT.  Make an appointment to discuss this and any other possible tax reduction strategies.

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