The rate for the FBT year from 1st April 2017 to 31 Mar 2018 has reverted to 47%. ATO has flagged that it will be keeping an eye out for more than incorrect rate being used. There are several areas of concern for the upcoming FBT season that practitioners can prepare for.
A common oversight from a fair number of employers is failing to obtain required declarations from employees. Declarations need not to be sent to the ATO unless requested, but it does require them to be retained as part of business records.
This constitutes a fringe benefit and needs to be declared on the FBT return.
Car parking valuations
The ATO will concentrate on the valuation aspect of this benefit.
The ATO will be looking to ensure that employee contributions are declared on both the fringe benefits tax return and the employer’s income tax return.
The ATO is concerned that entities that are not rebatable employers have been incorrectly claiming this rebate.