Superior Accounting Group

Fringe Benefits Tax

Getting down to the detail, and how it impacts your business

Business Christmas Present

It’s come to the end of the year when Christmas and new year’s is looming and holidays are in order but before we relax, we need to talk about FBT formally known as Fringe Benefits Tax.

FBT is tax that is payable by employers for benefits paid to an employee in lieu of salary or wages. Basically, this is separate to income tax and is calculated on the taxable value of the fringe benefits provided.

You may even be required to pay FBT if you provide certain fringe benefits to an employee in respect of employment. An employee can be a current, future or past employee, or a director of a company or trust.

I don’t know about anyone else but this is getting too much to handle on holidays, but just keep reading as this can directly affect you and I’ll try to keep it short and sweet. Below I am going to provide you all with threshold amounts for exemptions and reductions for 2019.

 

Type Of Benefit

 

Exemption/Reduction – 2019 FBT Year

Minor benefit exemption threshold – S.58P

Less than $300

Long Service Awards (‘LSA’s’) exemption threshold – S.58Q

 

Generally = $1,000 + [$100 x (RLS – 15)

RLS = Number of whole years of service

Safety Awards exemption threshold – S.58R

 

$200 per employee. Per FBT year

In-house benefits reduction – S.62

$1,000 per employee, per FBT year

Now what is FBT reportable benefits threshold for the 2019 FBT year?

The FBT reportable fringe benefits threshold for the 2019 FBT year is $2,000.

This means the FBT payment summary reporting rules will only apply where the total taxable value of reporting fringe benefits provided to an employee during the 2019 FBT year exceeds $2,000.

Lastly, what is the benchmark interest rate for 2019 of the FBT year?

The benchmark interest rate for the FBT year commencing is 5.20% per annum.

The rate of 5.20% is used to calculate the taxable value of:

  1. A loan fringe benefit
  2. A car fringe benefit

 

You can download a FREE FBT Gift Guide for all of your end of year business functions and presents to find out just what the tax requirements are, and how to make it work for you!

That’s it everyone we have come to the end of the blog and you can let yourselves relax, if you want to know more about FBT Awe will be posting a webinar on the topic on our YouTube page on the 11th of December. I would recommend you check it out. If you have any questions at all please don’t hesitate to contact us by email or phone, we would love to have a chat.

Have an amazing and relaxing break, a Merry Christmas and a safe and happy new year to you all, we will see you next year!!!

Merry Christmas