Rewarding employees on top of their usual salary to show your appreciation for a job well done is a great way to keep them engaged in their role. From a taxation perspective it is important that you keep track of the benefits you provide to ensure you claim any related deductions for your business.
A company car or motorbike, use of a holiday home, gym memberships, accommodation, concert tickets or other lifestyle assets are usually considered fringe benefits and fringe benefits tax (FBT) can be applicable. It is important to keep a record of each asset and how it’s used to protect you and your staff from breeching this requirement.
With the deadline for FBT returns on 22 May approaching, up-to-date records can help you get things right when you lodge your activity for the year.
Crosby Dalwood’s registered tax and BAS agents can help you with tax advice and prepare for 22 May.