What is the statutory method of FBT?
The statutory FBT method is based on how much the vehicle costs rather than how much it is being used privately. It uses a flat rate of 20% of the car’s base value, taking into account the number of days per year the vehicle is available for private use.
What reporting is required to the ATO for FBT?
If you provide an employee with fringe benefits (other than excluded benefits) with a total taxable value of more than $2,000 in an FBT year, you must report the grossed-up value on their income statement or payment summary for the corresponding income year (1 July to 30 June).
Do I include FBT in my tax return?
Even though a reportable fringe benefits amount (RFBA) is included on your income statement or payment summary and is shown on your tax return, you do not: include it in your total income or loss amount. pay income tax or Medicare levy on it.
What is Type 1 and Type 2 FBT?
The difference between a Type 1 fringe benefit and Type 2 fringe benefit is whether the amount is entitled to a GST credit. Type 1 fringe benefits are a GST taxable supply with an entitlement to a GST credit whereas with Type 2 fringe benefits, the provider of the benefit is unable to claim a GST credit.
What is FBT statutory rate?
The Statutory FBT method A flat rate of 20% of the car’s base value is used, which takes into account the number of days a year the vehicle is available for private use. Put simply, the base value is the car’s purchase price, less stamp duty and any registration costs incurred as part of the purchase.
How is FBT calculated?
The tax payable is the fringe benefits taxable amount multiplied by the FBT rate. Work out the taxable value of each fringe benefit you provide to each employee. Multiply the total fringe benefits taxable amount (from step 6) by the FBT rate. This is the total FBT amount you have to pay.
How does FBT affect your tax return?
How Does FBT Affect Your Tax Return? (Employee) An employee does not pay tax on fringe benefits, FBT is paid by employers. Taxable income does not include fringe benefits, and the medicare levy (but not medicare levy surcharge) is calculated without the value of fringe benefits being taken into account.
What is a Type 2 FBT?
Type 2: lower gross-up rate This rate is used if the benefit provider is not entitled to claim GST credits. FBT Type 2 gross-up rate. FBT year.
How does FBT affect my tax return?
Consequences of having a reportable fringe benefits amount Even though a reportable fringe benefits amount (RFBA) is included on your income statement or payment summary and is shown on your tax return, you do not: include it in your total income or loss amount. pay income tax or Medicare levy on it.
What is FBT tax rate?
This information contains fringe benefits tax (FBT) rates and thresholds for the 2017–18 to 2021–22 FBT years. An FBT rate of 47% applies across these years. The FBT year runs from 1 April to 31 March. Certain rates and thresholds are referenced from the relevant taxation determination.
How is the statutory rate for FBT determined?
The current statutory rate is 20%. Amendments to the formula from the 2011 year reduced an advantage which was previously available in relation to vehicles with high kilometres travelled in the FBT year. Until 10 May 2011 the statutory rate was determined by the distance travelled by the vehicle during the tax year.
When do FBT thresholds start to be published?
From the 2020–21 FBT year onwards, tax determinations will only be published for: Reasonable food and drink amounts for employees living away from home. All other rates and thresholds will only be available on this page.
How does employee contribution affect value of FBT?
Employee contributions directly reduce the value of an FBT benefit on a dollar-for-dollar basis, and may be cheaper option where the employee’s tax rate is lower than the current FBT rate (which matches the top marginal personal tax rate), and after adjusting for GST if applicable.
What is the FBT threshold for fringe benefits?
So if an employee receives certain fringe benefits with a total taxable value of $2,000.01 for the FBT year ending 31 March 2019, the reportable fringe benefits amount is $3,773. Reportable fringe benefits thresholds Threshold for reporting on payment summaries. FBT years ending. 31 March 2018, 2019 and 2020.