Your employer must report on your payment summary the total pre-tax value of certain fringe benefits (the 'grossed-up' amount of fringe benefits) which they provided to you (or your relatives) when these benefits exceed $2,000 for you. For example, the grossed-up amount for $2,001 worth of benefits is a pre-tax value to you of $3,738.
You do not include this grossed-up amount in your total income or loss amount and you do not pay income tax or Medicare levy on it. However, we use the grossed-up amount to determine:
- surcharges, if any, that apply to you
- deductions that you can claim
- tax offsets and other government benefits for which you are eligible.
See question IT1 in Individual tax return instructions for more information on reportable fringe benefits.
Reportable employer superannuation contributions
Your employer must report the amount of reportable employer superannuation contributions on your payment summary.
If your payment summary shows an amount at reportable employer superannuation contributions and you do not salary sacrifice amounts to superannuation, then you should ask your employer to confirm that the amount of reportable employer superannuation contribution on your payment summary does not include compulsory contributions such as super guarantee or award contributions.
We will not include reportable employer superannuation contributions in your income and you will not pay income tax or Medicare levy on it. However, we use reportable employer superannuation contributions to determine:
- your eligibility for some tax offsets
- the government super contribution and other government benefits
- whether the Medicare levy surcharge applies to you.
See question IT2 in Individual tax return instructions for more information on reportable employer superannuation contributions.