Bonus Article, FBT returns, employee declarations, and a looming deadline

An employee declaration is written advice given to an employer by their employee containing information relating to the fringe benefits staff have received. A business needs to keep employee declarations to apply certain fringe benefit tax (FBT) concessions. They are not to be sent to the ATO, but retained as part of business records.

The requirements for record keeping that is required for FBT purposes can be found in chapter 4 of this ATO “Guide for employers”, with the specifics regarding declarations found at sections 4.8 and 4.9. These sections also have worked examples to further explain the role of declarations.

A business can also receive employee declarations electronically, however the declaration must still be signed by the employee using an electronic signature. Employees can provide employee declarations, in the approved format, electronically with their electronic signature if:

  • The employer consented to the method of electronic signature
  • the electronic declaration is readily accessible and understandable, and convertible into written English, in order to determine a business’s FBT liability.

An employer must obtain all employee declarations no later than the day on which their FBT return is due to be lodged. As your tax agent, the due date is 25 June if we lodge on your behalf electronically.

For the declarations shown in the list below, see this ATO web page.

  • Airline transport benefit declaration
  • Declaration of car travel to work-related medical examination, medical screening, preventative health care, counselling or migrant language training – section 61F
  • Employee’s car business use declaration
  • Employment interview or selection test declaration – transport in employee’s car – section 61E
  • Expense payment fringe benefit declaration
  • Fuel expenses declaration
  • Living-away-from-home declarations
  • Loan fringe benefit declaration
  • No private use declaration – expense payment benefits
  • No private use declaration – residual benefits
  • Overseas employment holiday transport
  • Property benefit declaration
  • Recurring expense payment fringe benefit declaration
  • Recurring property benefit declaration
  • Recurring residual fringe benefit declaration
  • Relocation transport declaration – section 61B
  • Remote area holiday transport declaration – sections 60A and 61
  • Residual benefit declaration
  • Residual benefit declaration – vehicles other than cars
  • Temporary accommodation relating to relocation declaration.