FBT Question

[PetaJ]

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The accountant we had at work said that Fringe Benefits tax applied to staff discount.
I have looked and looked but I can’t find anywhere on the ATO website that states that this is correct.
Does anyone here know if this is so?

[beancounter]

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Hello PetaJ

Here’s a page on the ATO website that may help you decide:

“Fringe benefits tax – what you need to know”
As an employer who may be providing fringe benefits to your employees, you need to know how fringe benefits tax (FBT) works.

http://www.ato.gov.au/print.asp?doc=/content/950.htm

[PetaJ]

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Have you given property, such as electrical goods, to your employees either free or at a discount?

Just read this one on the ato website. Looks like it would apply to staff discount. Thanks for your help again beancounter.

[StellarScott]

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There may be an FBT liability but if the employee contribution is more than the cost of the property the liability is nil

The staff discount is often quoted as off retail this is not the basis of the FBT liability

[PetaJ]

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SSW consulting, post: 58270 wrote:

There may be an FBT liability but if the employee contribution is more than the cost of the property the liability is nil

The staff discount is often quoted as off retail this is not the basis of the FBT liability
This is very interesting Scott. If I understand you correctly;
Say I buy a table from work. The price to the general public is $500. I get it for $200, but the company bought it at cost for $100. As the $200 is above the cost price it wouldn’t be liable for FBT?

[StellarScott]

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Hi Peta

Your assumption is correct, for goods bought for re-sale

There are more complicated rules for goods produced for sale as well as a general exemption of $1,000 per employee for ‘property benefits’.

If you want to PM me happy to give relevant parts of act etc or further clarification

[Author]

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