As the FBT season dawns upon us once again, Wolters Kluwer recently hosted the Fringe Benefits Tax 2024 — Annual FBT Compliance Update with the ATO webinar. Jennifer Madigan, Director, FBT Risk & Governance at the ATO, along with a panel of experts, provided crucial updates on various FBT matters. Here's a summary of the key topics discussed:
Law and Policy Updates: Electric Vehicles FBT Exemption:
- Since July 1, 2022, electric cars have been exempt from FBT under certain conditions, fostering eco-friendly initiatives.
- The exemption covers zero or low emissions vehicles, used by employees or their associates, provided luxury car tax wasn't applicable during importation or sale.
Associated Car Expenses:
- Expenses for electric vehicles such as registration, insurance, repairs, maintenance, and fuel are exempt from FBT when provided in connection with a car fringe benefit.
Second Hand Electric Vehicles:
- Clarification is needed regarding the eligibility of second-hand electric vehicles for the exemption, emphasizing the importance of accurate records.
Guidance Finalized on EV Home Charging Rate:
- A Practical Compliance Guideline now offers a simplified method to calculate electricity costs for electric vehicles charged at home.
Car Parking Benefits:
- Recent updates in the interpretation of "commercial parking station" provide clarity and guidance on car parking fringe benefits.
Case Update and Alternative Records:
- The Federal Court's decision in Bechtel Australia Pty Ltd v FC of T underscores ongoing discussions around travel expenses for FIFO workers.
- Legislation amendments grant employers the option to rely on alternative records for FBT returns starting from the 2025 FBT year.
ATO Approach to Education and Compliance:
- The ATO's focus remains on educating employers and ensuring compliance through various campaigns and initiatives like the "Know Your FBTs" campaign.
Random Enquiry Program:
- The ATO conducts risk-based reviews to ensure compliance with superannuation, PAYG, and FBT obligations, deterring non-compliance.
Key Compliance Takeaways:
- Employers must identify, calculate, and report fringe benefits accurately, keeping records to demonstrate calculations and promptly rectify any errors.
FBT Returns 2024:
- Employers and tax agents have specific due dates for lodgment and payment, emphasizing the importance of compliance and timely reporting.
Stay informed, stay compliant, and let's navigate the FBT season together!
For more information, visit the ATO website and stay tuned for updates.
Source: ASIC website, Contributed by Marcus Lai, Content Management Analyst, Wolters Kluwer
- Should you have any queries, please contact Tax Ideas Accountants & Advisers on
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