FBT Wrap Up – Issues to be aware of for the end of the 2017 FBT year

By March 16, 2017Blog
Wheels & Gears

The end of March brings the 2017 FBT year to a close, we have a final wrap up of FBT News from Ben Wright, Manager, who recently attended an NTAA FBT Seminar for 2017.

Issues to consider when assessing your fringe benefits obligations:

  1. Car fringe benefits are one of the main benefits provided by employers to their employees. For details on current treatment and issues please refer to our recent blog ‘Back to basics with Car Fringe Benefits’.
  1. Changes to Meal Entertainment rules with respect to salary packaged meal entertainment. From 1 July 2016, the ATO have removed the 50/50 split and 12-week register method for calculation of these benefits leaving only the actual method available.
  1. Employers must disclose on an employee’s PAYG payment summary the grossed-up taxable value of all reportable fringe benefits provided to that employee where the taxable value of those fringe benefits exceed $2,000.
  1. Fringe benefits that may be excluded or non-reportable (and therefore not disclosed on an employee’s PAYG payment summary) include:
  • Car parking fringe benefits (excluding reimbursed expenses)
  • Meal entertainment not provided a part of a salary packaging arrangement
  • Car fringe benefits where the cars is shared or pooled amongst two or more employees in an FBT year
  • Remote area benefits to employees including remote area housing assistance, residential fuel, occasional travel and freight for foodstuffs
  • Certain benefits to police and defence force personnel
  1. Tax Treatment of Gifts, like providing tickets to sporting events and restaurant vouchers, remains problematic.
  1. The ATO has confirmed FBT sting for employers providing Uber travel between home and work. The ATO has now aligned the FBT rules for Uber & Taxis, as a result, the same rules apply in relation to the type of travel provided by the employer.
  1. The ATO has announced record keeping concessions for employers maintaining a fleet of vehicles available for private use for employees. The concession relates to the need to maintain log book records and the application of a simplified average business percentage use that can be applied to all vehicles.
  1. Customer loyalty programs have also been an area of concern for the ATO and employers often do not realise the fringe benefits tax obligations of providing such benefits to employees.

Rates/Thresholds 2017:

FBT Rate 49%
Type 1 FBT gross-up rate 2.1463
Type 1 FBT gross-up rate 1.9608
Minor benefits exemption threshold $300
FBT Benchmark Interest Rate 5.65%
FBT reportable fringe benefit threshold $2000
FBT daily car parking threshold $8.48

 

For further information on recent changes or any of your FBT obligations, please contact our office.

If this was of interest or benefit to you, please forward to a friend.

The information provided in this blog is general in nature and not to be taken as tax advice.  Contact our office for more information.

Share This Post:
Social media & sharing icons powered by UltimatelySocial