04:05
ISSUE 4
Payroll and Fringe Tax in Australia
Author: Paul Mather
One of the challenges with the relationship is that Payroll is generally a defined person or team within an organization. However, FBT is often a responsibility that one person manages as part of their role (jokingly referred to as managing FBT whilst doing the day job). At the very least Payroll and FBT need to be good friends, who communicate regularly and understand each other’s needs and obligations! Someone once said to me that Payroll and FBT were like a marriage made in heaven. There is certainly some truth to that statement – when the relationship between the two goes well, there are no issues, but when the relationship breaks down issues can arise.
In addition, Payroll and FBT should support each other and be each other’s “Eyes and Ears”.
What is FBT? FBT (Fringe Benefits Tax) was
introduced in Australia in 1986 to close the large non-taxing loophole of non- cash fringe benefits. The FBT law currently has 13 defined fringe benefit categories, including cars, car parking, loans, meal entertainment, board, housing and debt waivers.
Made with FlippingBook - Online magazine maker