Fringe benefits tax (FBT) is a tax employers must pay on certain benefits provided to their employees which is separate to wages and salaries. The current FBT rate is 47% which applies across the 31 March 2022 to 31 March 2026 FBT years.
The FBT year runs from 1 April to 31 March. If your FBT liability for the last year was $3,000 or more, you will need to pay 4 quarterly instalments.
Gross-up rates for FBT
Type 1: higher gross-up rate
This rate is used where the benefit provider is entitled to a goods and services tax (GST) credit in respect of the provision of a benefit.
Type 2: lower gross-up rate
This rate is used if the benefit provider is not entitled to claim GST credits.
Reportable fringe benefits
If you provide certain fringe benefits with a total taxable value of more than $2,000 during the FBT year, you must report:
the grossed-up taxable value of the fringe benefits on the employee's income statement or payment summary
for the corresponding income year.
Reportable fringe benefits are grossed-up using the lower gross-up rate.
For example, if an employee receives certain fringe benefits with a total taxable value of $2,000.01 for the FBT year ending 31 March 2025, the reportable fringe benefits amount is $3,773.
Capping of concessional FBT treatment for certain employers
The capping thresholds for the FBT exemption and FBT rebate concessions are shown below:
Record keeping exemption threshold
Car fringe benefits statutory formula rates
A flat statutory rate of 20% applies to all car fringe benefits you provide from 1 April 2014, regardless of the distance travelled.
You can work out your taxable value and FBT payable with this car calculator.
Deemed depreciation rate for cars
For cars purchased on or after 10 May 2006, the depreciation rate is 25%.
Electric vehicle home charging rate
One way to calculate the electricity costs for charging an electric vehicle at an employee’s home is through the methodology outlined in Practical Compliance Guideline PCG 2024/2 Electrical vehicle home charging rate – calculating electricity costs when a vehicle is charged at an employee's or individual's home. For the FBT year starting on or after 1 April 2022, the EV home charging rate in the PCG is 4.20 cents per kilometre.
Alternatively, if you do not meet the eligibility requirements you can determine the cost of the electricity by calculating its actual cost.
Motor vehicle (other than a car) – cents per kilometre rate
Car parking threshold
Statutory or benchmark interest rate
Housing indexation figures
Reasonable food and drink amounts for employees living away from home (LAFHA) – in Australia
Reasonable food and drink amounts for employees living away from home (LAFHA) living overseas
The table below sets out the reasonable food and drink amounts for each cost group:
The table below sets out the factors to apply if the employee is accompanied by other family members while overseas:
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.
Source: ATO