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  • Record keeping exemption arrangements

    Some employers can calculate their FBT liability using the total taxable value of fringe benefits provided in an earlier base year in which full FBT records were kept. If you use this arrangement, you won't need to keep full FBT records for a particular FBT year.

    However, you may still be required to record the value of fringe benefits on employees' income statements or payment summaries.

    The base year is the FBT year ended 31 March 1997 or any year after that.

    You can elect to use the record keeping exemption arrangements if all of the following conditions are met:

    • you are not a government body or income tax exempt at any time during the current year
    • the Commissioner of Taxation has not issued a notice requiring you to resume keeping records
    • you were in business for the whole of the base year (the base year may be the FBT year ended 31 March 1997 or any year after that)
    • you kept FBT records in the base year
    • you lodged the FBT return for the base year by the due date
    • the aggregate fringe benefits amount (total of taxable values of all fringe benefits) in the base year did not exceed the record keeping exemption threshold
    • you have elected that the record keeping exemption arrangements apply in all years from the most recent base year to the current year
    • the aggregate fringe benefits amount for benefits provided in the current year is not more than 20% greater than it was in the most recent base year, unless the difference is $100 or less
    • the above conditions are also satisfied for all years between the base year and the current year.

    See also:

      Last modified: 10 Feb 2021QC 16948