You must keep records that show the taxable value of certain fringe benefits provided to your organisation’s employees, regardless of your organisation type.
If the total taxable value of reportable fringe benefits you provide to an employee in an FBT year (1 April to 31 March) is more than $2,000, you must record the grossed-up taxable value of those benefits on your employee’s payment summary for the corresponding income year (1 July to 30 June).
This requirement applies even if your organisation is not liable to pay FBT.
Benefits that are exempt from FBT may still need to be reported on payment summaries.
The notional taxable value of a benefit must be allocated to the relevant employee where a benefit is exempt from FBT due to:
capping thresholds that apply to public benevolent institutions, health promotion charities, hospitals and public ambulance services, and/or
concessions that apply to religious institutions and non-profit companies in relation to live-in residential care workers.
While the above employers are required to report these amounts on payment summaries where they exceed the reporting threshold, the benefits will continue to be exempt from FBT.
The reportable fringe benefits amount shown on the payment summary is not included in the employee’s assessable income. It is, however, included in a number of income tests relating to certain government benefits and obligations.
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