The 2024 Fringe Benefits Tax (FBT) return lodgement due date is fast approaching: 21 May 2024.
For businesses and significant global entities (SGE) – avoiding the significant failure to lodge on time penalties (which start from $156,500) are of extreme importance (read more below). Now is a crucial time to:
- Determine whether agent support is needed to meet the deadline; and
- If support is needed, act swiftly to appoint an agent by 21 May to be covered by their lodgement program.
Avoiding the significant failure to lodge on time penalties (which start from $156,500) is a high priority for SGE’s
Appointing a FBT agent by 21 May 2024 will provide a lodgement extension till 25 June 2024. It is important that your team contacts us ASAP (book a time now) to ensure we complete the agent-client linking in time.
FBT return outsourcing options
There are 2 scope options for our SGE’s clients once a lodgement extension is granted:
- Compliance review option: Review and lodgement of the 2024 FBT return and supporting workpapers prepared by your team; or
- Complete outsourcing option: you can engage Specialist Taxes Group to prepare and lodge your 2024 FBT return and supporting workpapers.
A FBT lodgement extension leaves little time for complacency
A Fringe Benefits Tax (FBT) lodgement extension leaves little time for complacency given the high level of detail and information gathering that takes place when preparing and finalising a FBT return.
If you outsource your payroll to a third party provider, they will need the Reportable Fringe Benefit Amounts (RFBA’s) by the start of June 2024 to finalise the annual STP declaration.
Why is a lodgement extension so important for SGE’s?
If your business is a significant global entity (SGE), as is the case with a majority of our clients, failure to lodge on time penalties are significantly higher than other taxpayers (the base penalty is multiplied by 500).
A SGE that lodges a FBT return late by 28 days or less will result in a staggering failure to lodge on time penalty of $156,500 and the ATO is not required by law to issue a warning before applying a FTL penalty.
Therefore, it is important to act now if there is a risk you may not meet the lodgement deadline. Book a no-obligation Teams Meeting with us for more information on how Specialist Taxes Group can help your organisation this FBT year.