The Crackdown on Fringe Benefits Tax by the ATO

With the current Fringe Benefits Tax (FBT) period ending on March 31, employers must ensure they lodge an FBT return if they have provided any relevant fringe benefits to their employees.

Recently, the ATO released a list of FBT issues that they will be paying closer attention to. A major area they will be targeting is employers who are either lodging FBT returns after the deadline, or not lodging them at all.

If you are required to lodge an FBT return and have never previously lodged, the ATO may audit your activity from the last 3-years or longer.

A common tactic used by employers to avoid an audit is to simply lodge a nil FBT return every year. However, this pattern of behaviour can attract attention from the ATO, and a hefty fine if it is found that you had an FBT liability.

If you believe you may need to lodge an FBT return, please contact us at AWT Accountants. We can assist in identifying any potential fringe benefits and assist with the preparation of an FBT return.