With the 2020 Fringe benefits tax (FBT) Year End looming, we have put together this concise FBT summary guide to provide your business with:
Type 1 benefits: 2.0802
Type 2 benefits: 1.8868
The table below sets out the various FBT due dates relevant for taxpayers who either prepare their FBT returns themselves or use tax agents to prepare their returns.
The ATO has released draft Taxation Ruling TR 2019/D5 Fringe benefits tax: car parking benefits to replace Taxation Ruling TR 96/26 which has been withdrawn.
For a car parking fringe benefit to arise, one condition is a commercial parking station must be located within a one-kilometre radius of the work car park.
The most significant development in TR 2019/D5 has been the interpretation of what the Commissioner constitutes a commercial parking station. The draft Ruling now provides a commercial parking station can include the following:
Previously, shopping centre car parks and other similar facilities such as hospital car parks were generally not considered to be commercial parking stations for FBT purposes.
This change of interpretation may have a significant impact for businesses that provide car parking spaces for their employees where FBT has historically not been paid.
If TR 2019/D5 is finalised in its current form, the changes will come into effect from 1 April 2021.
Separate rulings will be released by the ATO in draft form for consultation later this year. These will cover the deductibility of meals, accommodation and incidental expenses, which will also have FBT implications in respect of the otherwise deductible rule and when an employee is living away from home.
There is no requirement to substantiate the FBT exemption for each individual vehicle. However, we recommend businesses have a policy in place that limits the private use of these vehicles for employees and that the business can demonstrate the use of the vehicle meets the eligibility criteria. As an example, this could be done by comparing the opening and closing odometer readings of the vehicle with the total distance you expect the employee to travel between home and work during that particular period.