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  • K – Property

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Find out more

    Changes have been made to the FBT law to remove the concessional treatment of in-house property fringe benefits provided under a salary packaging arrangement entered into on or after 22 October 2012. Transitional rules apply where an existing salary packaging arrangement was entered into before 22 October 2012.

    For more information, refer to Reform of salary sacrificed 'in-house- fringe benefits.

    End of find out more

    You may provide a property fringe benefit when you provide an employee with property (for example, goods), either free or at a discount.

    Example: Calculate property fringe benefits

    An electrical retailer provides a television that normally sells for $2,000, and an air conditioner that normally sells for $1,600, to an employee during the FBT year. The employee paid a total of $300 for these items.

    The value of the benefit is reduced to 75% of the selling price. Because these items are in-house property fringe benefits, the taxable value is 75% of the normal selling price and the employer qualifies for the in-house concession of up to $1,000 per employee per year.

    The retailer calculates the property fringe benefit as follows:

    Gross taxable value is $2,700 (($2,000 + $1,600) x 75%)

    Value of reduction is $1,000.

    The electrical retailer would show this at item 23 as follows:

    Example of electrical retailer entry at item 23

    End of example
    Last modified: 23 Oct 2013QC 27133