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  • Reportable fringe benefits – facts for employees

    This information is for employees who receive certain fringe benefits from their employer. The taxable value of these benefits is recorded on either your:

    • income statement through ATO online services in myGov
    • payment summary from your employer.

    On this page:

    Reportable fringe benefits amount

    You have a reportable fringe benefits amount if the total taxable value of certain fringe benefits provided to you or your associate (for example, a relative):

    • exceeds $2,000
    • in a fringe benefits tax (FBT) year (from 1 April to 31 March).

    Employers are required to gross-up this amount and report it on your income statement or payment summary.

    The total amount of reportable fringe benefits you receive from all your employers for a year is called your reportable fringe benefits total.

    Amounts reported on your income statement or payment summary

    The reportable fringe benefits amount for an income year (1 July to 30 June) is shown on either your:

    • income statement through ATO online services in myGov
    • payment summary from your employer.

    The amount recorded is the grossed-up taxable value of the reportable benefits provided in the previous FBT year (1 April to 31 March).

    That means the reportable fringe benefits amount on your income statement or payment summary for the year ending 30 June 2020 would be the grossed-up taxable value of the reportable benefits provided from 1 April 2019 to 31 March 2020.

    Employment finished between 1 April and 30 June

    You may finish employment between 1 April and 30 June. Your employer has provided you with fringe benefits exceeding a total of $2,000 during this time. They must show the reportable fringe benefits amount on your income statement or payment summary for the income tax year ended 30 June in the following year. This is even though you won't receive any salary or wages from that employer in the following income year.

    Your employer has until 14 July following the end of the income year covered by the income statement or payment summary to provide you with an income statement or payment summary.

    Example: Finishing employment

    Joan finishes employment with her employer on 15 May 2020. From 1 April 2020 to 15 May 2020, Joan receives fringe benefits from that employer with a reportable value of $4,000.

    Joan's employer is required to report this reportable fringe benefits amount on Joan's income statement or payment summary for the income year ended 30 June 2021. Joan's employer has until 14 July 2021 to finalise their Single Touch Payroll data or issue the payment summary.

    End of example

    Excluded fringe benefits

    Some fringe benefits don't have to be reported on your income statement or payment summary. These benefits are called 'excluded benefits' and can include:

    • car parking fringe benefits
    • remote area housing assistance, home ownership schemes, and repurchase schemes
    • if you live in a remote area, costs of occasional travel to a major Australian population centre
    • benefits you receive to ensure your security and personal safety because of your job
    • meal entertainment and entertainment facility leasing benefits, where these benefits are not provided under a salary sacrifice arrangement
    • emergency or other essential health care you receive as an Australian citizen or permanent resident while you are working outside Australia and you cannot claim a Medicare benefit
    • certain benefits provided to you if you are either a    
      • defence force member
      • police officer
    • car benefits coming from your private use of pooled or shared cars.

    Benefits exempt from FBT

    Some benefits are exempt from fringe benefits tax (FBT). Although these are often referred to as 'exempt fringe benefits', the FBT legislation refers to them as 'exempt benefits'.

    An exempt benefit can’t be a fringe benefit. Exempt benefits are not reported on your income statement or payment summary.

    See also:

    Calculating reportable fringe benefits amount

    Your employer calculates your reportable fringe benefits amount. They multiply the taxable value of the fringe benefits (that are reportable) provided to you or your associate by the lower gross-up rate. The lower gross-up rate for the FBT year ending 31 March 2020 is 1.8868.

    For example, if the taxable value of your fringe benefits is $2,000.00, your reportable fringe benefit amount is calculated as $2,000.00 × 1.8868 = $3,773.

    The reportable fringe benefit amount reflects the gross salary that you would have to earn to purchase the benefit from your after-tax income.

    Example: working out amounts for income statements or payment summaries

    Tim's employer provides him with a work car in the 2020 FBT year (that is, between 1 April 2019 and 31 March 2020). The taxable value of Tim's car fringe benefits is $2,500. Tim and his partner also stay in the company's coastal accommodation several times a year, with a taxable value of $800. Both of these fringe benefits are reportable.

    The taxable value of Tim's fringe benefits totals $3,300 ($2,500 for the car + $800 for the holiday). The grossed-up taxable value of these benefits will appear on his income statement or payment summary for the income year ending 30 June 2020.

    The lower gross-up rate for the 2020 FBT year is 1.8868. The grossed-up amount reported on Tim's income statement or payment summary is $6,226. This is calculated as follows:

    Total taxable value × 1.8868

    = $3,300 × 1.8868

    = $6,226.

    End of example

    See also:

    Consequences of having a reportable fringe benefits amount

    Even though a reportable fringe benefits amount (RFBA) is included on your income statement or payment summary and is shown on your tax return, you do not:

    • include it in your total income or loss amount
    • pay income tax or Medicare levy on it.

    Your reportable fringe benefits amount is used for:

    • calculating your liability to the Medicare levy surcharge
    • determining your entitlement to the private health insurance rebate
    • determining whether you are liable for Division 293 tax for superannuation contributions
    • determining your eligibility for the government co-contribution for personal superannuation co-contributions you made
    • determining your eligibility for the low-income super tax offset for concessional (before tax) super contributions you or your employer pays into your super fund
    • determining whether you can offset your business loss against other income (non-commercial losses)
    • working out if you are entitled to reduce your employee share scheme discount
    • working out the amount you must repay against your
      • Higher Education Loan Program (HELP)
      • Vocational Education and Training Student Loan (VETSL)
      • Student Financial Supplement Scheme (SFSS)
      • Student Start-up Loan (SSL)
      • ABSTUDY Student Start-up Loan (ABSTUDY SSL)
      • Trade Support Loan (TSL) debt
    • determining your entitlement to a tax offset for          
      • contributions you made to your spouse's super
      • invalid and invalid carer
      • zone or overseas forces
      • net medical expenses for disability aids, attendant care or aged care
      • Medicare levy surcharge (lump sum payment in arrears)
      • seniors and pensioners
    • determining your eligibility for family assistance payments, including
      • Family Tax Benefit Part A and Part B
      • Child Care Subsidy
      • Parental Leave Pay
      • Dad and Partner Pay
    • working out your child support obligations.

    Reducing your reportable fringe benefits amount

    You can reduce the amount of fringe benefits shown on your income statement or payment summary for future years by:

    • arranging with your employer to replace your fringe benefits with cash salary
    • making employee contributions out of your after-tax income towards the cost of the benefits.

    Employee contributions

    Employee contributions are a payment you make towards the cost of your employer providing a fringe benefit. Generally, this is when you make a cash payment to your employer or the person who provided the benefit.

    For example, you can make an employee contribution towards a car fringe benefit by paying a third party for some of the operating costs (such as fuel) that your employer does not reimburse.

      Last modified: 24 Dec 2020QC 16122