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  • Reviewing your salary packaging arrangements

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    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:

    • The log book method
    • The cents per kilometre method (a single rate of 66 cents per kilometre now applies).

    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.

    Find out about:

    See also:

    • The changes to the rules for individuals claiming car expense deductions also impact on employers who pay car allowances. Employers now need to withhold tax if the car allowance exceeds 66c per kilometre. See table 1 in Withholding from allowances.
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