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M – Other benefits (residual)

Last updated 15 May 2014

Show at item M the value of any residual fringe benefits you provide. You may provide a residual fringe benefit when you provide an employee with either of the following:

  • any right, privilege, service or facility
  • any other benefit that is not one of the specific categories of fringe benefits included at other categories in item 23.

Changes have been made to remove the concessional treatment of in-house residual fringe benefits provided under a salary packaging arrangement entered into on or after 22 October 2012. Transitional rules apply where an existing salary packaging arrangement was entered into before 22 October 2012.


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Reform of salary sacrificed 'in-house' fringe benefits 

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Start of example

Example: Calculate other benefits (residual fringe benefits)

An employer has a one-tonne utility with $8,000 in total operating costs for the FBT year. The employee uses the utility for both business and private purposes. The employee provides the employer with a declaration stating that they used the utility 25% of the time for private purposes. The employee has not made any contributions during the year.

The calculation for the utility as a residual fringe benefit would be:

($8,000 x 25%) – $0 = $2,000

Value of reduction is $8,000 x 75% = $6,000 (business usage).

The employer shows this at item 23 as follows:


End of example