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  • Recent and proposed law changes

    FBT rate changes

    The FBT rate has changed for the FBT year ending 31 March 2018.

    FBT rate changes

    FBT year

    FBT rate of tax

    Type 1 gross-up rate

    Type 2 gross-up rate

    Year ending 31 March 2018

    47%

    2.0802

    1.8868

    Year ending 31 March 2016 and 31 March 2017

    49%

    2.1463

    1.9608

    Not-for-profit capping threshold and FBT rebate rate changes

    The not-for-profit capping threshold and FBT rebate rate has changed for the FBT year ending 31 March 2018.

    Not-for-profit capping threshold and FBT rebate rate changes

    FBT year

    Public benevolent institutions, health promotion charities, rebatable employers

    Public and non-profit hospitals and public ambulance services

    FBT rebate rate

    Year ending 31 March 2018

    $30,000

    $17,000

    47%

    Year ending 31 March 2016 and 31 March 2017

    $31,177

    $17,667

    49%

    Salary packaged meal entertainment and entertainment facility leasing expense benefits

    There are changes to salary sacrificed meal entertainment and entertainment facility leasing expense benefits which took effect for the FBT year ending 31 March 2017.

    All employers

    • All salary packaged meal entertainment and entertainment facility leasing expense benefits are reportable and are included on an employee’s payment summary where the reporting exclusion threshold is exceeded.
    • The 50-50 split method and 12-week register method cannot be used for valuing salary packaged meal entertainment or entertainment facility leasing expense benefits.
    • Meal entertainment and entertainment facility leasing expense benefits        
      • Provided under a salary packaging arrangement will be disclosed at items 23E, 23K or 23M.
      • Not provided under a salary packaging arrangement will be disclosed at items 23E, 23K, 23M or 23P.
       

    Rebatable employers, public and non-profit hospitals, public ambulance services, public benevolent institutions and health promotion charities that are eligible for the FBT exemption only

    • A separate single grossed-up cap of $5,000 applies for salary packaged meal entertainment and entertainment facility leasing expense benefits. The amount of these benefits that exceed the grossed-up cap of $5,000 are included in calculating whether the value of all benefits an employee receives exceeds the relevant capping thresholds.
    • Meal entertainment and entertainment facility leasing expense benefits    
      • Provided under a salary packaging arrangement will be disclosed at item 23L.
      • Not provided under a salary packaging arrangement will not be disclosed on the FBT return.
       

    See also:

    Small business entity FBT concessions

    Small business entities with an aggregated turnover of less than $10 million are able to access the small business car parking exemption and extended work-related items exemption from 1 April 2017 (the FBT year ending 31 March 2018).

    See also:

    Worker entitlement contributions

    Under changes proposed by the Fair Work Laws Amendment (Proper Use of Worker Benefits) Bill 2017 the exemption for worker entitlement contributions will only be available to an employer where the contribution is made to a fund either:

    • registered under the Fair Work (Registered Organisations) Act 2009
    • established by or under, and operating under, a law of the Commonwealth, a state or territory, for the purposes of ensuring that long service leave is paid.

    Other existing conditions for exemption are unaltered by the proposed measure.

    The proposed changes will apply from the date of commencement. Employers will need to confirm that any worker entitlement fund they make a contribution to is registered under the Fair Work (Registered Organisations) Act 2009 or is included on the register maintained by the Registered Organisations Commissioner as a transitioning fund at commencement. Funds that are currently endorsed as an ‘approved worker entitlement fund’ for fringe benefits tax may be ‘transitioning funds’ for up to six months while they seek registration as a worker entitlement fund.

    Worker entitlement funds

    Funds that are currently endorsed, or seeking endorsement, as a worker entitlement fund for FBT purposes will be required to register under the Fair Work (Registered Organisations) Act 2009 if they wish to continue to operate as a worker entitlement fund. Such registration will involve considerations and obligations unrelated to FBT.

    Significant issue

    Paying salary or wages in cryptocurrency

    Where an employee receives cryptocurrency as remuneration instead of Australian dollars, the payment of the cryptocurrency may be a fringe benefit.

    Find out about:

    See also:

    • TD 2014/28 Fringe benefits tax: is the provision of bitcoin by an employer to an employee in respect of their employment a property fringe benefit for the purposes of subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986?
    • TR 2001/10 Income tax: fringe benefits tax and superannuation guarantee: salary sacrifice arrangements

    Correcting a mistake

    You can correct a mistake by striking it out in black pen. Write the new information as close as possible to the boxes for the label. Do not use correction fluid or tape– this causes problems with scanning, which can delay the processing of your return.

    Last modified: 14 Jun 2018QC 54573