When Assumptions Meet Reality in Practice Purchases
A reflection on why some practice purchases struggle after settlement, not due to poor advice, but because assumptions, timing, and cashflow don’t always align in the real world.
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The 2022 Fringe benefits tax (FBT) year ended on 31 March 2022, so it’s a good time to start preparing what you need to do to lodge your business’ FBT return and pay FBT.
You’ll need to work out if the business has an FBT liability for any fringe benefits provided to employees (or their associates) between 1 April 2021 and 31 March 2022. An associate includes a spouse, child, parent, sibling and most other relatives (but not cousins).
If your business has an FBT liability for the 2022 FBT year, the FBT return and payment is due by 23 May 2022. This date applies as the statutory due date of 21 May falls on a weekend this year. The due date may differ if your business uses a tax agent.
If your business does not have an FBT liability, and it is registered for FBT, you still need to inform the ATO. You can do this by completing a Notice of non-lodgment – Fringe benefits tax form by the date your return would have been due.
Don’t forget to keep all records relating to the fringe benefits that have been provided, including how the taxable value of the benefits was calculated.
Tip! If your business provides fringe benefits to employees (or their associates), your tax adviser can help you prepare your FBT return and work out if you have an FBT liability.
A reflection on why some practice purchases struggle after settlement, not due to poor advice, but because assumptions, timing, and cashflow don’t always align in the real world.
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