The Fringe Benefits Tax (FBT) year came to an end on 31 March and it is time to consider any non-salary benefits provided to your employees.

While there have not been many fundamental changes to the 2021 FBT year rules, COVID-19 has created additional scenarios with potential FBT implications. These include but not limited to:

• Rapid Antigen Tests and vaccination incentives;
• Working from home; and
• Changes in motor vehicle use.

The good news is that many of these situations can be mitigated by existing FBT exemptions and concessions such as:

• Portable electronic devices used primarily for employment purposes;
• Expenses that would otherwise be deductible to the employee; and
• Minor and infrequent items costing less than $300.

As confirmed in the recent budget, the government plans to exempt work-related Rapid Antigen Tests from FBT.

The Australian Taxation Office (ATO) has also provided guidance on changes to motor vehicle usage due to COVID-19 including allowing reliance on existing on logbooks despite changes in driving patterns.

Further details regarding COVID-19 exemptions and concession can be found at the following ATO link:

https://www.ato.gov.au/General/COVID-19/Support-for-businesses-and-employers/COVID-19-and-fringe-benefits-tax/

Please use the following documents to review your FBT obligations and contact your trusted advisor if you have any questions.

2022 Logbook Declaration
2022 FBT Checklist
2022 FBT Return Information

Book a no-obligation consult.