Jan 22 2016
End of FBT Year – Here’s What Your Employees Need To Know!
The Fringe Benefits Tax (FBT) year runs from 1 April 2015 to 31 March 2016. As the end is approaching, we have some very important tips for your employees to ensure that they maximise their tax savings.
Tip # 1
If they are salary packaging general expenses, meals & entertainment and/or venue & accommodation, credit card, utilities, rates etc, they need to ensure they maximise their tax savings by submitting their claims on time to ensure that they are counted towards their salary packaging limit in this FBT year.
The cut-off date for submission of claims for this year is 20 March 2016.
Anything received after this date is not guaranteed to be processed in the current FBT Year.
Tip # 2
If you are a not-for-profit health or charity organisation and your employee has a NAB Threshold card, they should make sure that they spend their card balance on their NAB Threshold Card by 10pm on 31 March 2016.
If they don’t spend their card balance, it will be refunded to your payroll department and they therefore will not have maximised their tax savings for this FBT year.
Tip # 3
If your employee has a NAB Meals & Entertainment card, they need to ensure that they have spent their card balance by 10pm on 31 March 2016 as this year, due to the legislative changes associated with this benefit, all money that remains on their NAB Meals & Entertainment card, will be refunded to your payroll department and they therefore will not have maximised their tax savings for this FBT year.
Tip # 4
If your employee entered into a Novated Lease with us prior to 10 May 2011, they must submit an interim Odometer Reading now. Refer to our article Is Your Odometer Reading Up To Date? for important information that affects your employees in relation to Fringe Benefits Tax.
IMPORTANT INFORMATION FOR YOU AND YOUR EMPLOYEES
Meals & Entertainment and Venue & Accommodation Benefits
These benefits will be combined as at 1 April 2016. The newly combined benefit will be called an ‘Entertainment Benefit’.
NAB Threshold and Meals & Entertainment Cards
The cut-off date for expenditure on the NAB Threshold and NAB Meals & Entertainment cards is 10.00pm (AEST) on 31 March 2016.
The card will then be suspended temporarily until approximately 6.00am (AEST) on 4 April 2016, due to system and banking configuration.
All Confirmation Reports will be issued on approximately the 15th of February 2015. We will advise employees via email/sms.
The Confirmation Report will provide employees with an overview of their new 2016/2017 Salary Package benefits. If they wish to amend any of these benefits, they can do so via the Online Amendment Form, for which we will provide a link. Instructions will be available on the Online Amendment Form.
However, in relation to their new ‘Entertainment Benefit’, if their benefit currently exceeds $2,550.00, we will automatically reduce this for them to the capped amount of $2,550.00. They will not need to amend this benefit. They will only need to include an amendment for this benefit if they choose to:
- Remove this benefit completely
- Add this benefit (because they do not currently have it in their 2015/2016 Salary Package), or
- If they want to package less than $2,550.00