Which fringe benefits are reportable?
- All fringe benefits that have a taxable value (other than excluded benefits e.g. work related travel or car parking which is otherwise deductable.
- An employee does not pay income tax on any RFBA
- However an employees RFBA is taken into consideration when determining whether the employee is entitled to claim, or is liable to pay e.g. child support, Centre link, Medicare levy surcharge
Employer Obligations
- An employers FBT liability is not affected by the FBT reporting rules.
- It is simply an obligation placed on employers who have employee with reportable fringe benefits.
- It is the employers responsibility to record all RFBA amounts on an employees payment summary in the corresponding income year.
- FBT year 1 April – 31 March
Calculating an Employees Reportable Fringe Benefits:
Step 1 – Reportable benefits provided to the employee
Determine the total taxable value of RFB during the FBT year. This include employees share of the taxable value.
Step 2 – Reportable benefits provided to associate.
Determine the total taxable value of RFB provided to an employees associate e.g. Spouse (if exclusively provided to the associate)
Step 3 – Calculate the employees Individual Fringe Benefits Amount
= the sum of step 1 and 2
Step 4 – Calculate the employees RFBA (if any)
Where the employees IFBA exceeds $2000 in an FBT year, the employees IFBA must be grossed-up by 1.8692. The grossed-up amount is the employees RFBA which is record on employees payment summary.
Step 5 – Notify the employee of the RFBA
Let the employee know of the payment summary amount as soon as the employers FBT return is lodged.
