Fringe Benefit Tax (FBT) on BAS and IAS

What is Fringe Benefits Tax?

Fringe benefits tax (FBT) is a tax employers pay on certain benefits they provide to their employees – including their employees’ family or other associates.

Some businesses are required to make FBT payments to the ATO (monthly or quarterly), and that amount is normally fixed, but can vary in certain circumstances.

Fringe benefits tax amounts are not calculated by QuickBooks, only reported on the business or instalment activity statement.

For more information about whether FBT applies for your business and how to report FT instalment variances, please consult a tax professional and explore the ATO website links below:

https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/
https://www.ato.gov.au/business/business-activity-statements-(bas)/fringe-benefits-tax-(fbt)-instalment/

Recording FBT in QuickBooks

When FBT is enabled in GST settings, QuickBooks will include FBT in the lodgement flow for IAS (monthly) or BAS (quarterly) based on the reporting frequency selected. Once the BAS is lodged, an FBT Liabilities account will be created in the Chart of Accounts to track all FBT amounts.

If you have Enabled BAS E-lodgement for QuickBooks, your FBT instalment will be pre-populated in the updated filing flow.

To include an FBT amount to be paid expected by the ATO, input the amount under FBT instalment during the Other taxes filing stage.

To adjust the instalment amount or include an FBT credit, tick the I need to adjust this amount box and include the additional information as required by the ATO.

When your activity statement is lodged, QuickBooks will write a journal entry against the FBT Liabilities payable and the ATO Clearing Account.