How the reportable fringe benefits amount is used
Your reportable fringe benefits amount (RFBA) is the 'grossed up' value of fringe benefits you received from your employer (or employers).
You aren't taxed on your RFBA. However, it is used to determine:
- your liability for the Medicare levy surcharge
- your child's adjusted taxable incomeExternal Link, which affects whether they are considered a dependant for Medicare levy purposes
- your entitlement to the private health insurance rebate
- whether you are liable for Division 293 tax for superannuation contributions
- your eligibility for the government co-contribution for personal super co-contributions you made
- your eligibility for the low-income super tax offset for concessional (before tax) super contributions that you or your employer pay into your super fund
- whether you can offset your business loss against other income (non-commercial losses)
- if you are entitled to reduce your employee share scheme discount
- the amount you must repay against your debt for
- 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)
- your entitlement to a tax offset for
- contributions you made to your spouse's super
- invalid and invalid carer
- zone or overseas forces
- Medicare levy surcharge (lump sum payment in arrears)
- seniors and pensioners
- your eligibility for family assistance payments, including
- Family Tax Benefit Part A and Part B
- Child Care Subsidy (from 2 July 2018)
- Child Care Benefit for approved care (prior to 2 July 2018)
- Parental Leave Pay
- Dad and Partner Pay
- your child support obligations.
Example – RFBA used to work out the amount of HELP to repay
Olivia has a Higher Education Loan Program (HELP) debt of $10,000.
Olivia estimates her taxable income will be $60,000 in 2022–23. Based on this taxable income, Olivia would have a compulsory HELP repayment of $1,500 for 2022–23.
However, in 2022–23 Olivia also expects to receive fringe benefits from her employer with a reportable fringe benefit amount (RFBA) of $17,000. The RFBA isn't taxable, but it is added to Olivia's taxable income to determine her 'repayment income', which is the amount used to work out how much Olivia will need to repay towards her HELP debt in 2022–23.
If Olivia receives an RFBA of $17,000, then her HELP compulsory repayment estimate is worked out as:
Taxable income + RFBA
$60,000 + $17,000 = $77,000
This means Olivia would have a HELP compulsory repayment of $3,465 for 2022–23.
End of example
Example – RFBA used by Services Australia for Child Care Subsidy
Elijah's taxable income is $100,000 for the 2021–22 income year. Elijah's employer provides him with a car fringe benefit with a taxable value of $3,500. Elijah also receives a housing fringe benefit with a taxable value of $1,000. These fringe benefits are both reportable.
The taxable value of Elijah's fringe benefits is $3,500 + $1,000 = $4,500. The grossed-up taxable value of these benefits is $8,490 ($4,500 × 1.8868 (the lower gross-up rate for 2022)).
This means Elijah has a reportable fringe benefits amount (RFBA) of $8,490.
Elijah receives the Child Care Subsidy from Services Australia. When Services Australia works out how much Elijah is entitled to, they include both his taxable income and his RFBA:
$100,000 + $8,490 = $108,490
Services Australia will use the income amount of $108,490 to work out Elijah's CCS entitlement.
End of exampleEmployees of FBT-exempt organisations
If you're an employee of one of the following organisations, 53% of your RFBA is taken into account to determine your eligibility for family assistance and youth income support payments:
- public benevolent institution
- health promotion charity
- public or not-for-profit hospital
- public ambulance service.