FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART XIB - REPORTABLE FRINGE BENEFITS TOTALS  

SECTION 135P   EMPLOYEE'S REPORTABLE FRINGE BENEFITS AMOUNT - GENERAL RULE  

135P(1)   Does an employee have a reportable fringe benefits amount?  

An employee has a reportable fringe benefits amount for a year of income in respect of the employee's employment by an employer if the employee's individual fringe benefits amount for the year of tax ending on 31 March in the year of income in respect of the employee's employment by the employer is more than $2,000.

Example 1:

On 31 May 2007, Sylvia waives a debt of $2,545 that her employee Angela owes her, thus providing Angela with a debt waiver fringe benefit with a taxable value of $2,545 for the year of tax ending on 31 March 2008. Angela has a reportable fringe benefits amount for the year of income ending on 30 June 2008 in respect of her employment by Sylvia.

Example 2:

On 1 March 2008, Angela ' s employer Neil waives a debt of $1,900 Angela owes him, providing Angela with a debt waiver fringe benefit with a taxable value of $1,900 for the year of tax ending on 31 March 2008. However, he does not provide any other fringe benefits for that year of tax in respect of her employment, so Angela does not have a reportable fringe benefits amount for the year of income ending on 30 June 2008 in respect of her employment by Neil.

135P(2)   Size of the reportable fringe benefits amount.  

The reportable fringe benefits amount is the amount worked out using the formula:


Individual fringe
benefits amount
× 1
1 - Rate of tax for the year of tax

where:

individual fringe benefits amount
is the employee's individual fringe benefits amount for the year of tax in respect of the employee's employment by the employer.




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