Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to their employees or their employees' family or other associates . This is separate to income tax and is calculated on the taxable value of the fringe benefits provided. The FBT year runs from 1 April to 31 March.
Trade businesses, in particular, usually have vehicles or other assets that are used by employees for private purposes. It is important for business owners to identify this usage and report to the Australian Taxation Office (ATO).
From 1 July 2019, tax and super information needs to be sent to the ATO each time payroll is run and employees are paid. The new reporting requirement is called Single Touch Payroll (STP) and is currently available through most payroll, accounting and business software.
As a QBCC licence holder, you may have received a letter from the Queensland Building and Construction Commission (QBCC) notifying the licence holder of the new annual reporting requirements.
Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee (or an employee's associate e.g. a family member) in place of salary or wages. This is separate to income tax and is calculated on the taxable value of the fringe benefits provided. Trade businesses in particular usually have vehicles or other assets that are used by employees for private purposes. It is important for business owners to identify this usage and report to the Australian Taxation Office (ATO). We will prepare your FBT returns for you and lodge them with the ATO.
The most common questions we receive from clients in regard to purchasing a vehicle for their business are:
At Tradies Accountant we have been providing additional services to clients such as upgrading their licence category and helping resolve QBCC audits. We have found that some of the business owners are unaware of their requirements regarding holding a QBCC licence. As a trade business owner and a licence holder, you need to make sure you are compliant with all QBCC licence requirements. Explained below are the two main requirements imposed by QBCC:
The Queensland Government is implementing project bank accounts from the 1st of March 2018 for certain building and construction projects valued between $1 million and $10 million. This new incentive will also begin in 2019, to private sector projects that are over $1 million.
Project bank accounts, will involve the following 3 parties:
-Principal - who the building work is being carried out for under the contract
-Head Contractor - who is carrying out the building work under the contract
-Subcontractor - first-tier subcontractors who have been subcontracted by the Head Contractor to carry out the work under the contract
16 Jul 2018 – Issue PAYG withholding payment summaries to employees