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:

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

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