3 February 2016
The new fringe benefits tax year starts on 1 April 2016. The following changes will take effect from this date.
Car expense fringe benefits
The rules for individuals claiming car expense deductions have changed.
As a result, if you reimburse expenses relating to an employee's use of their own car, only two methods will be available to calculate the taxable value of this fringe benefit (when you apply the 'otherwise deductible' rule).
The two methods are:
Meal entertainment benefits
All salary packaged meal entertainment benefits will be reportable. They will also be subject to a separate cap of $5,000. Benefits exceeding this cap will be counted towards an employee’s existing FBT exemption or rebate cap.
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Helping you grow.
The new fringe benefits tax exemption is now in effect.