Fringe Benefits Tax Instalments

FBT instalments are generated on your activity statement automatically if you had FBT of $3,000 or more in the previous year.

The BAS form is pre-loaded with an instalment amount and due dates for lodging and paying.

FBT instalments are paid quarterly.

Connection to the annual FBT return

FBT returns are lodged annually with a March quarter end date.

For quarterly FBT instalment payers, the annual FBT return will not be processed unless all preceding quarterly BAS returns are lodged, and instalments paid, including the return for the final March quarter.

The annual FBT return is effectively an annual reconciliation. Any balancing payment is settled with the return.

How to reduce (vary) your FBT instalment amount

FBT-instalment-variation

If business or cash flow conditions are such that the amount of the instalment is too high, the instalment amount can be varied by application in the FBT area of your activity statement.

An FBT instalment variation requires an estimate of your full year liability.

A difference is then calculated between the quarter-to-date liability (apportioned evenly over 4 quarters) and what has already been paid.

The resulting difference is either positive or negative – i.e. a balance to pay, or a credit to your activity statement account. Under-estimates of actual liability by more than a factor of 10% can result in penalties being applied.

This information is included in the FBT instalment section of the quarterly BAS statement.

A reason code for the variation must be supplied. Accepted reasons are:

  • Current business structure not continuing
  • Change in fringe benefits for employees
  • Change in employees with fringe benefits
  • Fringe benefits rebate now claimed

The Tax Office reserves the right to retain refunds against other amounts owing, whether due to be paid at that time or not.  If you have an ABN they will only pay refunds by EFT to your nominated bank account.

Further Information

 

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This page was last modified 2019-01-08