Fringe Benefit Tax Rules
With the legislative changes for FBT implemented as of 1 April 2016, it is important to get familiar with the new regulations. Some modifications have been made to salary sacrificed meal entertainment and entertainment facility leasing expense benefits, which may affect you.
Some of the changes will affect all employers, whereas others will affect non-profit employers as follows.
All employers | Non-profit employers |
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Other recent FBT changes which may impact you:
- From 1 April 2016, employers will no longer be able to calculate otherwise deductible amounts using the 12 per cent of a car’s original value or one third of actual expenses methods.
- From 1 April 2016, small business employers with an aggregate annual turnover of less than $2 million can provide their employees with more than one work-related item that will be exempt from FBT, even if the items have substantially identical functions.
- The FBT rate has changed for the FBT year starting 1 April 2015 and for subsequent years.
FBT year | FBT rate | Type 1 gross-up rate | Type 2 gross-up rate |
Starting 1 April 2015 and 1 April 2016 | 49% | 2.1463 | 1.9608 |
Starting 1 April 2017 | 47% | 2.0802 | 1.8868 |
- The non-profit capping threshold and FBT rebate rate has changed from the year starting 1 April 2015 onwards.
FBT year | PBIs, HPCs, Rebatable employers | Public and non-profit hospitals and public ambulance services | FBT rebate rate |
Starting 1 April 2015 and 1 April 2016 | $31,177 | $17,667 | 49% |
Starting 1 April 2017 | $30,000 | $17,000 | 47% |