Prosper in Tough Times
As part of the Federal Governments commitment to assisting businesses manage through the current economic environment, they are funding the Australian Industry Group (Ai Group) to deliver a series of free seminars across fives states from April to June.
Simopn Flowers, a partner at LBW has been asked to present among others at the Geelong/Newtown and is a session that should not be missed by any small to medium enterprise. Key points of the presentation include a review of the economy and business outlook, managing your finances, aligning your business startegy, keeping and growing customers and cutting costs.
Now is the time to check whether you have provided any fringe benefits to your employees in respect of their employment that are taxable and make sure you are ready to lodge your FBT return and pay any FBT liability on time.
We are here to help you make sure that you are making the most of planning opportunities and that your business is up to scratch when it comes to its FBT compliance.
A fringe benefit is a 'payment' to an employee, but in a different form to salary or wages.
According to the fringe benefits tax (FBT) legislation, a fringe benefit is a benefit provided in respect of employment. This effectively means a benefit provided to somebody because they are an employee. The 'employee' may even be a former or future employee.
An employee is a person who is entitled, or has been entitled, to receive, salary or wages. Benefits provided in respect of someone who has died are not fringe benefits as a deceased person does not meet the definition of ‘employee’ in the FBT legislation.
The terms benefit and fringe benefit have broad meanings for FBT purposes. Benefits include rights, privileges or services. For example, a fringe benefit may be provided when an employer:
- allows an employee to use a work car for private purposes
- gives an employee a cheap loan
- pays an employee’s gym membership
- provides entertainment by the way of free tickets to concerts
- reimburses an expense incurred by an employee, such as school fees, and
- gives benefits under a salary sacrifice arrangement with an employee.
What do I need to do?
Am I eligible?
- your 2007–08 taxable income was not more than $100,000 your adjusted tax liability for 2007–08 is greater than zero (that is, you paid tax).
- you lodge your 2007–08 income tax return by 30 June 2009 or by a deferred lodgement date that we granted to you before 18 February 2009, and
- you were an Australian resident for tax purposes during the 2007–08 financial year.