FleetDrive 23 - June 2020 | Page 16

Tax time tips With tax time just around the corner, it’s time to make sure you’re getting the best return for your organization and for your own personal needs. WORDS BY DANIEL BRAID Know The Rules of FBT Keep up to date with any changes by looking regularly at the ATO website. FBT is paid by employers on certain benefits they provide to their employees or their employees’ family or other associates. FBT applies even if the benefit is provided by a third party under an arrangement with the employer. FBT is separate to income tax and is calculated on the taxable value of the fringe benefit. The employer must self-assess their FBT liability for the FBT year (that is, 1 April to 31 March) and lodge an FBT return. Work Related Tax Deductions due to COVID-19 The ATO has devised a new method for work-related tax deductions in light of more people working from home due to coronavirus. The new method will allow people to claim 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses. The new change is in effect from March 1 to June 30 and may be extended by the ATO should the COVID-19 situation progress significantly. Click here for more information. 16 ISSUE 23 2020 / WWW.AFMA.ORG.AU