April 18, 2024

Wrapping up the FBT year

As the curtain falls on another Fringe Benefits Tax (FBT) year (31 March 2024) employers and employees alike must stay abreast of the updates and intricacies that shaped the landscape.

From electric vehicle exemptions to the fine print of work-from-home arrangements, the past year has been a testament to the evolving nature of fringe benefits. Let’s delve into the key takeaways and what they mean for your financial planning.

Electric Vehicle exemption: A green light for sustainability

A highlight of the year was the introduction of FBT exemptions for electric vehicles, aimed at accelerating the adoption of cleaner, greener modes of transport.

This exemption applies to vehicles below the luxury car tax threshold, provided they were first held and used on or after July 1, 2022. While this move has opened up new avenues for employers to offer environmentally friendly transport options, it comes with its set of conditions and considerations, especially regarding the provision of home charging stations.

Work From Home: Adapting to the new normal

The shift towards flexible work arrangements has spotlighted work-related items for home use. The provision of portable electronic devices, such as laptops and mobile phones, essential for remote work, falls under FBT exemptions, reflecting the changing dynamics of our work environments.

Contractor or employee: Clarifying the distinction

Recent High Court decisions have underscored the importance of accurately classifying workers as either contractors or employees for FBT purposes. This classification affects FBT obligations and highlights the need for clear, documented agreements to support the nature of these working relationships.

Entertainment expenses: Balancing deductions and FBT reporting

A critical area of focus has been the alignment of entertainment expenses claimed as deductions with those reported for FBT purposes. Ensuring accuracy and consistency in these claims is essential to avoid attracting unnecessary attention from the ATO. 


Moving forward: Ensuring compliance and maximising benefits

As we look ahead, it’s vital to leverage the learnings from the past year to streamline FBT management. Whether it’s embracing sustainable transport options, optimising work-from-home setups, or ensuring accurate worker classification, staying informed and proactive is key to navigating theFBT landscape effectively.

Honouring the ANZACs

Our office will be closed on ANZAC Day, April 25, as we pay tribute to the courage and sacrific eof our fallen servicemen and women.

The office will also be closed on April 26.

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Financial Advisors Bendigo Country Road at Dawn Lead Advisory Group
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