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Recent and proposed law changes

Last updated 20 March 2016

FBT rate changes

The FBT rate has changed for the FBT year starting 1 April 2015 and for subsequent years.

FBT year

FBT rate

Type 1 gross-up rate

Type 2 gross-up rate

Starting 1 April 2015 and 1 April 2016

49%

2.1463

1.9608

Starting 1 April 2017

47%

2.0802

1.8868

Non-profit capping threshold and FBT rebate rate changes

The non-profit capping threshold and FBT rebate rate has changed from the year starting 1 April 2015 onwards.

FBT year

PBIs, HPCs, Rebatable employers

Public and non-profit hospitals and public ambulance services

FBT rebate rate

Starting 1 April 2015 and 1 April 2016

$31,177

$17,667

49%

Starting 1 April 2017

$30,000

$17,000

47%

Future change to work-related items exemption

From 1 April 2016, small business employers with an aggregate annual turnover of less than $2 million can provide their employees with more than one work-related item that will be exempt from FBT, even if the items have substantially identical functions.

See also:

Future changes to calculating the otherwise deductible rule

From 1 April 2016, changes to the FBT law mean employers will no longer be able to calculate otherwise deductible amounts using the 12 per cent of a car's original value or one third of actual expenses methods.

See also:

Future changes to salary sacrificed entertainment

There are changes to salary sacrificed meal entertainment and entertainment facility leasing expense benefits which take effect from 1 April 2016.

Some of the changes will affect all employers, whereas others will affect non-profit employers as follows.

All employers

Non-profit employers
  • All salary packaged meal entertainment and entertainment facility leasing expenses are reportable and will be included on an employee’s payment summary where the reporting threshold is exceeded.
  • The 50-50 split method and 12 week register method will not be able to be used for valuing salary packaged meal entertainment or entertainment facility leasing expenses.
 
  • A separate single grossed-up cap of $5,000 will be introduced for salary packaged meal entertainment and entertainment facility leasing expense benefits for employees of employers able to access a general fringe benefit tax exemption or rebate. The amount of those benefits exceeding the separate grossed-up cap of $5,000 is included in calculating whether the value of all benefits an employee receives exceeds their existing FBT exemption or rebate cap.
 

See also:

 

QC48361