Suggestions for schools on preparing for the end of an FBT year, which is March 31st each year.

• Odometer readings are obtained for any motor vehicles provided as a fringe benefit
• any post-tax employee contribution is received by that date if applicable. Note that GST applies to these contributions
• Declarations are received from all employees in the ATO approved format in relation to benefits which are 'otherwise deductible' or for which there is 'no private use'.

• assumption that it is optional not to claim the GST input tax credit and accordingly
• grossing up the taxable value of the benefit provided using only the Type 2 gross up rate
• grossing up entertainment expenses using the Type 2 gross up rate
• using the Type 2 gross up rate where vehicles are under hire purchase
• claiming 100% GST credits on meal entertainment benefits, but using the 50/50 valuation method for FBT purposes
• benefits being reported on a GST exclusive basis
• employee contributions not returned as income and no GST remitted
• failing to reconcile the RFBA with the payment summaries
• incorrectly identifying some four wheel drive vehicles as exempt vehicles
• failure to keep log books when using the operating cost method, and
• not retaining declarations for expense payment benefits.

In relation to the last point the Tax Office has particularly noted over a number of years the failure of employers generally to hold 'no private use' or 'otherwise deductible' declarations. To assist schools in obtaining these declarations we have prepared a sample set of declarations in the ATO format for schools to customise and use - these are included in our FBT Toolkit.

Additional information: ATO site

CSA FBT toolkit