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A company car might seem like a straightforward business perk, but it could come with an unexpected tax cost. In this episode, Mai and Lee unpack Fringe Benefits Tax (FBT) and explain why businesses need to understand the tax implications of providing employees with benefits outside their regular wages.

They break down what counts as a fringe benefit, why FBT exists, and how benefits such as company vehicles, fuel cards, private health insurance, entertainment, and personal expenses can create an FBT liability. They also explore salary packaging, gross-up rules, the 47% FBT rate, and the practical considerations businesses need to keep in mind when offering employee benefits.

In this episode, they discuss:

• The basics of Fringe Benefits Tax and why it exists
• What can be considered a fringe benefit
• How salary packaging and gross-up rules can affect your FBT liability
• Entertainment expenses and the $300 minor and infrequent benefits threshold
• How benefits provided to spouses, children, and other associates can create FBT obligations
• FBT considerations when providing company vehicles to employees
• Vehicle exemptions, including eligible 100% electric vehicles and certain commercial vehicles
• The potential FBT implications of dual-cab vehicles and private use
• Why logbooks, vehicle policies, and employee declarations are important
• How private-use percentages can affect your overall FBT exposure
• ATO data matching, compliance activity, and the importance of getting your FBT position right
• Why lodging a nil FBT return may help limit the review window

Whether you provide company vehicles, staff entertainment, or other employee benefits, this episode offers practical insights to help you better understand your FBT obligations and identify potential tax risks before they become costly surprises.

If you have a vehicle registered in your business name or provide benefits to your employees, now is a good time to review your FBT position. If you'd like help understanding your obligations, our team at My Accounting Advantage is here to help.

Learn more about My Accounting Advantage

Disclaimer

The advice contained in this presentation is general in nature only and should not be acted on without first seeking professional advice.

Your personal circumstances have not been taken into account, and you should consider the appropriateness of the advice to your individual needs.