Reportable Fringe Benefits

Reportable fringe benefits amounts form part of the expanded income tests used in determining eligibility for a number of taxation concessions and benefits of individual taxpayers.

Reporting Fringe Benefits -Threshold

Employers are required to itemise the grossed-up total of all reportable benefits over the threshold (currently $2,000) in each employee’s annual payment summary. The threshold is determined before grossing-up, and is not apportioned for a part year.

Benefits which are exempt from FBT are in general not reportable. However benefits which are exempt only because the employer is exempt, such as a Public Benevolent Institution, are required to be calculated and reported as the employee’s notional fringe benefits.

The threshold has been the same ($2,000) since 1 April 2007.

However the gross-up rates have changed in response to changes in the top marginal tax rate, in recent times due to the addition of the temporary deficit reduction levy which applied in the FBT years 2015-2017.

The current grossed-up value of the threshold for the FBT year ending 31 March 2019 is ($2,000/(1-0.47)) = $3,773 (based on the FBT rate of 47%)

The grossed-up value of the threshold for the FBT year ending 31 March 2018 is ($2,000/(1-0.47)) = $3,773 (based on FBT rate of 47%)

The grossed-up value of the threshold for the FBT year ending 31 March 2017 is ($2,000/(1-0.49)) = $3,921 (based on FBT rate of 49%)

Calculation

The grossing-up of reportable fringe benefits is calculated at the Type 2 gross-up percentage.

The gross-up percentage (Type 2) is calculated:

Fringe Benefits Amounts
1 – FBT rate

See assistance for detailed calculation requirements here: Fringe benefits tax – a guide for employers Chapter 5 – Reportable fringe benefits

Reporting Period

Reportable benefits are required to be calculated for the Fringe Benefits Tax year which runs from 1 April to 31 March. The reported amounts will be included in payment summaries issued for the overlapping tax year – i.e. from 1 July to 30 June.

Reportable fringe benefits are not taxable income, but they affect the calculations for various entitlements, levies and offsets which take adjusted income into account.

Non-reportable fringe benefits (“Excluded Fringe Benefits”)

Fringe benefits which do not have to be reported are referred to as excluded fringe benefits, and include the following:

  • entertainment you receive in the form of food and drink, including associated benefits such as travel and accommodation
  • car parking fringe benefits, apart from eligible car parking expense payments
  • hired or leased entertainment facilities, such as corporate boxes
  • remote area housing assistance, home ownership schemes, and repurchase schemes where the value of the benefit is reduced under FBT law
  • costs of occasional travel to a major Australian population centre by you and your family if you live in a remote area
  • freight costs for your food if you live in a remote area
  • fringe benefits you receive to ensure your security and personal safety because of your job
  • emergency or other essential health care you receive as an Australian citizen or permanent resident while you are working outside Australia and you cannot claim a Medicare benefit
  • certain Australian Government overseas living allowance payments
  • certain benefits provided to you if you are a defence force member
  • certain benefits provided to you if you are a police officer
  • car benefits coming from your private use of pooled or shared cars.

Regulation amendment 11 April 2013: to exclude living-away-from-home (LAFH) allowances and benefits, including certain expense payment benefits and residual benefits, from being reportable fringe benefits for Commonwealth employees where those employees are required to live away from their normal residence in order to undertake their official duties of employment. The Regulation ensures that the unique nature of Commonwealth deployments, such as Defence and Foreign Affairs deployments, do not result in unintended outcomes such as exceeding income thresholds relating to government benefits. The amendments apply in relation to benefits provided on or after 1 October 2012, to align with the MYEFO amendments to LAFH allowances and benefits.

Individual tax return reporting of benefits

Reportable benefits shown on payment summaries are required to be declared in an individual’s tax return.

The quantum of benefits reported will correspond to totals for the immediately preceding year ending 31 March, being the FBT year.

Information is entered into the “Income tests” information area of the tax form which requires itemisation of fringe benefits amounts, reportable superannuation and other matters.

Instructions for the completion of this information (2018 year) are here.

Further information:

 

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This page was last modified on 2018-12-10