FBT recordkeeping overhaul
Proposed simplification of fringe benefits recordkeeping
In recent years, there have been several recommendations made by independent statutory bodies to modernise FBT and simplify compliance procedures. Currently, a number of employee declarations and other prescribed forms are required to be obtained and maintained by employers which often becomes another compliance burden every FBT year-end.
First announced in the 2020–21 Federal Budget, an exposure draft has been released aiming to simplify FBT record-keeping obligations.
Before the introduction of this measure, you were required to obtain and maintain a number of employee declarations and other prescribed forms each FBT year, all before the lodgement due date. With the introduction of this measure the Commissioner has the power to apply your existing corporate records as substantiation documentation to comply with these record-keeping obligations.
Guidance has already been provided in relation to travel diaries and relocation transport declaration, as follows:
Travel diaries
Current record-keeping requirements
A travel diary must be maintained for any travel that is either:
- outside Australia for more than 5 consecutive nights, or
- within Australia for more than 5 consecutive nights, where travel is not exclusively for performing employment-related duties.
Adequate alternative records
Any type of record or records (when aggregated) that contain all of the following information:
- name of the employee receiving the benefit
- duration of the travel
- for each activity undertaken by the employee in the course of producing their assessable income while undertaking the travel ie place where the activity was undertaken; date and approximate time activity commenced; duration of activity and nature of activity.
Relocation transport costs
Current record-keeping requirements
- Relocation transport declaration
Adequate alternative records
Any type of record or records (when aggregated) that contain all of the following:
- name of employee or associate
- number of family members travelling in the car
- make and model of the car driven
- address of the departure location
- address of the arrival location
- date or dates of travel
- total number of whole kilometres travelled between the address of departure and the address of arrival.
We anticipate that the Commissioner will provide further guidance in relation to all other types of fringe benefits in due course.
We can assist you with navigating through the changes and prepare a record-keeping checklist for you once more information is on hand.
We will closely monitor the progress of this legislation through the parliamentary process and keep you updated.
Please note: Any changes will not take effect until the next FBT year after legislation is given Royal Assent.
Should you have any queries, or if you would like to discuss this further, please feel free to contact our office.