If the total taxable value of non-excluded fringe benefits provided to individual employees in a FBT year (1 April to 31 March) is more than $2,000, entities must report the grossed-up taxable value of those benefits, the RFBA, on employees' payment summaries.
From 1 April 2007, the fringe benefits reporting exclusion threshold increased from $1,000 to $2,000.
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The gross-up rate used for RFBA reporting is always the type 2 gross-up rate (1.8692) irrespective of the gross-up rate used for FBT return reporting purposes. So a fringe benefit with a taxable value of $2,000.01 becomes an RFBA of $3,738.
Employees should be advised that the receipt of fringe benefits might result in an RFBA (if the total taxable value of all non-excluded benefits provided to that employee exceeds $2,000 for the FBT year).
Employees should be notified of the potential RFBA implications before they receive fringe benefits. For example, an employee should be notified of the potential RFBA implications of home-garaging a car before the employee home-garages the car, and an employee should be notified of the potential RFBA implications of receiving a LAFHA before receiving the allowance.
In some situations, it may be possible for employees to be notified as part of ordinary business processes. For example, RFBA implications can be included:
- on a vehicle running sheet
- as part of employees' living-away-from-home documentation
- on a claim for reimbursement form
- on an otherwise deductible declaration form, as appropriate.
For more on advising employees on the RFBA implications of receiving fringe benefits, refer to:
End of further information
The remainder of this information provides better practice guidance in relation to those benefits that are commonly provided by many Australian Government entities. Fringe benefits relating to airline transport have not been included as they are not a benefit provided by Australian Government entities.
The information is divided into seven sections as set out below. Benefit types are grouped together based on either a calculation methodology or because the benefits are similar in nature.
- Car fringe benefits
- Tax-exempt body entertainment and meal entertainment benefits
- Expense payment, property and residual fringe benefits
- Car parking fringe benefits
- LAFHA and fringe benefits provided as a result of living-away-from-home or relocation
- Housing and board fringe benefits
- Loan and debt waiver fringe benefits