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  • Completing your FBT return 2018 calculation details – taxable employers

    Return calculation details – items 14A to 23

    14A Type 1 aggregate amount

    To calculate your type 1 aggregate amount:

    1. Work out the total taxable value of all the fringe benefits you provide for which you can claim a GST credit    
      • If not already included, add any excluded fringe benefits that are GST creditable to the total amount. Excluded benefits are those benefits that you provide that are not included on your employees' payment summaries.
       
    2. Multiply the result from step 1 by the higher gross-up rate of 2.0802    
      • Grossing up means increasing the taxable value of benefits you provide to reflect the gross salary employees would have to earn at the highest marginal tax rate (including Medicare levy) to buy the benefits after paying tax.
       

    Example 3: Type 1 aggregate amount

    You provide the following benefits to your employees:
    • Motor car for their private use. These are    
      • car fringe benefits calculated using the statutory formula method (as you did not elect to use the operating cost method).
      • GST taxable supplies with entitlements to GST input tax credits.
       

     

    $10,000

    • Reimbursement of restaurant meals not provided under a salary packaged arrangement. You elected to classify these expense payment fringe benefits as meal entertainment fringe benefits. These are        
      • excluded benefits as they are not reported on your employees' payment summaries
      • GST taxable supplies with entitlements to GST credits.
       

     

    $1,000

    Step 1

     

    Total taxable value of type 1 fringe benefits amount

    $10,000

    Total taxable value of type 1 excluded fringe benefits amount

    $1,000

     

    = $11,000 

    Step 2

    Type 1 aggregate amount = $11,000 × 2.0802

     

    $22,882.20

     

     

    End of example

    14B Type 2 aggregate amount

    To calculate your type 2 aggregate amount:

    1. Work out total taxable value of all those benefits for which you can't claim a GST credit    
      • If not already included, add any excluded fringe benefits for which you can't claim a GST credit.
       
    2. Multiply the result from step 1 by the lower gross-up rate of 1.8868.

    Example 4: Type 2 aggregate amount

    You provide the following benefits to your employees:
    • Reimbursement of school fees. These are expense payment fringe benefits and are GST-free supplies with no GST input tax credit entitlement. 

     

    $6,000

    • Remote area rent reimbursements. These are expense payment fringe benefits and are input taxed with no GST input tax credit entitlement. These are also excluded benefits as they are not reported on your employees' payment summaries. 

     

    $3,000

     Step 1

     

    Total taxable value of type 2 fringe benefits amount

    $6,000

    Total taxable value of type 2 excluded fringe benefits amount

    $3,000

     

    Step 2

    Type 2 aggregate amount = $9,000 × 1.8868

    = $9,000

    = $16,981.20 

     

     

    End of example

    14C Aggregate non-exempt amount

    You must leave item 14C blank as this item only applies to public and non-profit hospitals, public ambulance services, and eligible public benevolent institutions and health promotion charities. These employers should refer to Completing your FBT return 2018 – not-for-profit employers.

    15 Fringe benefits taxable amount

    Add the amounts at items 14A and 14B and write the total at item 15, even if the amount is nil.

    You must complete this item because it (and item 16) forms the basis of self-assessing any FBT liability.

    16 Amount of tax payable

    Multiply the amount you wrote at item 15 by 47% (the FBT rate for the year ending 31 March 2018) and write the total amount of tax payable at item 16, even if the amount is nil.

    You must complete this item because it (and item 15) forms the basis of self-assessing any FBT liability.

    17 Aggregate non-rebatable amount

    As you are not a rebatable employer, you must leave item 17 blank.

    Rebatable employers should refer to Completing your FBT return 2018 – not-for-profit employers.

    18 Amount of rebate

    As you are not a rebatable employer, you must leave item 18 blank.

    Rebatable employers should refer to Completing your FBT return 2018 – not-for-profit employers.

    19 Sub-total

    As you are not a rebatable employer, write the amount you wrote at item 16.

    Rebatable employers should refer to Completing your FBT return 2018 – not-for-profit employers.

    Illustration 1: Items 14–19 of a taxable employer return

    These figures are from Examples 3 and 4.

    Items 14-19 of a taxable employer return

    End of example

    Make sure you provide the sub-total at item 19 and not at items 17 or 18.

    20 Less instalment amounts reported on activity statements

    Add together the FBT instalment amounts you reported on your four activity statements for the 2018 FBT year, and show the total amount at item 20. We will credit this amount against your 2018 FBT liability. Do not include any amount you paid for:

    • penalties
    • any other year’s liability.

    If you pay your FBT by instalments, you must lodge all of your activity statements for the FBT year ending 31 March 2018, including the March 2018 quarter, before lodging your FBT return – we can then update your FBT account. If all activity statements are not lodged before lodging your FBT return, your return will not be actioned until all instalments are paid.

    If you do not pay your FBT by instalments, leave this item blank.

    Example 5: Amounts reported on activity statements

    If your FBT instalment amounts for the year starting on 1 April 2017 were:

    Period

    Amount

    Quarter ending 31 March 2018

    $4,000

    Quarter ending 31 December 2017

    $4,000

    Quarter ending 30 September 2017

    $4,000

    Quarter ending 30 June 2017

    $4,000

    Total instalments for the FBT year 1 April 2017 – 31 March 2018

    $16,000

    You would write ‘$16,000’ at item 20.

    End of example

    21 Payment due

    If the amount at item 20 is:

    • more than the amount at item 19, go to item 22
    • less than the amount at item 19, write at item 21 the exact difference between the amounts.

    The amount at item 21 is the difference between the following:

    • the amount you have paid throughout 2018
    • the amount you must pay by 21 May 2018 (unless you have made other arrangements with us).

    You may round down this amount to the nearest multiple of five cents.

    See also:

    22 Credit due to you

    If the amount at item 20 is more than the amount at item 19, write at item 22 the difference between the amounts. We will credit this amount to you. However, if you owe us money for other taxes, we may reduce the amount of the credit you show at item 22.

    23 Details of fringe benefits provided

    The rules for calculating the taxable value of a fringe benefit vary according to the type of benefits provided.

    You must identify the type of benefits provided before you:

    • work out the taxable value of any benefit
    • complete the 'Taxable value of benefits' column.

    We describe each type of benefit in Fringe benefits tax – a guide for employers.

    Do not include any aggregate amounts at this item.

    Number

    Write the number of cars, loans or houses (or other units of accommodation) you use to provide car, loan or housing fringe benefits at items:

    Details of fringe benefits provided

    Item

    Description

    A

    Cars using the statutory formula

    B

    Cars using the operating cost method

    C

    Loans granted

    F

    Housing – units of accommodation provided

    Write at item G the number of employees who received a living-away-from-home allowance.

    Gross taxable value (a)

    Write in this column the sum of the taxable values of fringe benefits for that particular benefit category before any reductions (for example, employee contributions).

    If there are no employee contributions or reductions, include this figure also in the 'Taxable value of benefits (a) – (b) – (c)' column.

    Employee contribution (b)

    An employee contribution is a payment you receive from your employee to reduce the cost of the fringe benefit you provide.

    For example, employee contributions include amounts an employee pays to you for using a car and/or for car operating costs such as fuel.

    Employee contributions you receive are generally assessable for income tax purposes and must be included in your income tax return. If you lodge a company, trust or partnership return, you must also show the amount of employee contributions you received on that return. If you are an income tax exempt employer you do not need to lodge an income tax return just because you receive employee contributions.

    Write in this column the sum of all employee contributions made for that particular benefit category.

    If you write an amount in this column, the employee must make the contribution before you lodge this return.

    Special arrangements apply where the contribution is made by a journal entry in your accounts. For more information, see Miscellaneous Taxation Ruling MT 2050 Fringe benefits tax: payment of recipients contribution by journal entry.

    Excess employee contributions

    You cannot use any excess employee contribution for one benefit to reduce the taxable value of other benefits you provided to that employee or other employees.

    Any excess contribution can either be refunded to the employee or dealt with as agreed between the employer and employee including being deferred to the following FBT year against the same fringe benefit.

    Employee contributions and GST

    Employee contributions (other than a contribution of services as an employee) are consideration for a taxable supply and you must pay GST on the supply. The GST-inclusive employee contribution reduces the taxable value of the fringe benefit.

    GST does not form part of an employee’s contribution where the:

    • benefit is either GST-free or input taxed
    • GST was paid to a third party – for example, for fuel
    • benefit provider is not registered or required to be registered for GST
    • benefit is not a taxable supply.

    For more information on how GST applies to employee contributions, see Goods and Services Taxation Ruling GSTR 2001/3 Goods and Services Tax: GST and how it applies to supplies of fringe benefits.

    Value of reductions (c)

    This is the total amount where benefits of that category have been reduced:

    • under the ‘otherwise deductible’ rule
    • by other means – for example, in relation to in-house fringe benefits.

    The ‘otherwise deductible’ rule only applies if both of the following apply:

    • the recipients of the benefits are current employees
    • you obtain from employees prior to the day your FBT return 2018 is due or by 21 May 2018 any necessary supporting documents, such as    
      • declarations
      • receipts
      • invoices.
       

    Taxable value of benefits (a) – (b) – (c)

    This is the sum of the taxable values of fringe benefits of that particular benefit category, after taking into account any employee contributions and/or other reductions for each fringe benefit. If the employee contributions or reductions are greater than the benefit you provided, show zero on the FBT return, not a negative amount.

    When completing this column, make sure you also complete the 'Gross taxable value (a)' column – see Fringe benefit categories.

    Illustration 2: Items 19–23

    These figures are from Examples 3, 4 and 5. Your subtotal is $18,735.61.

    Items 19-23

    End of example

    Declarations – items 24 and 25

    24 Registered tax agent’s declaration

    Registered tax agents are required to sign the declaration at item 24.

    25 Employer’s declaration

    You must complete this item if you lodge your FBT return 2018 on your own behalf.

    Public officer or authorised officer declaration

    The public officer is responsible for doing all things required by the company. In the case of default, the public officer is liable to the same penalties.

    A public officer or authorised officer must sign and date for companies.

    Partnership

    For a partnership, one of the partners must sign and date the declaration.

    Trust

    For a trust, the trustee or public officer must sign and date the declaration.

    Government bodies

    For government bodies, the delegated officer must sign and date the declaration.

    Last modified: 14 Jun 2018QC 54573