Fringe Benefits Tax Assessment Act 1986
An FBT year is a base year of an employer if:
(a) the employer carries on business operations throughout the FBT year; and
(b) the employer lodges an FBT return for the FBT year within the time allowed for doing so under section 68 ; and
(c) as at the declaration date for the FBT year, the employer has kept and retained all the records that are (ignoring section 135E ) required to be kept and retained under subsection 132(1) in relation to the employer ' s liability under this Act for the FBT year; and
(d) the employer ' s aggregate fringe benefits amount for the FBT year does not exceed the exemption threshold (see subsections (2) and (3)) for the year; and
(e) section 135G does not apply to the employer for the FBT year (that section allows employers to work out their liability to pay tax using their aggregate fringe benefits amount from a previous base year, instead of the current FBT year). 135C(2) Exemption threshold for 1996 - 97 FBT year.
The exemption threshold for the FBT year beginning on 1 April 1996 is $5,000.135C(3) Exemption threshold for later FBT years.
The exemption threshold for a later FBT year is the amount worked out using the formula:
|Exemption threshold × Indexation factor|
[ CCH Note: The exemption threshold is announced annually by the Commissioner by way of Taxation Determination. The thresholds are as follows:
|FBT year ending 31 March||Exemption threshold|
(a) 1; and
(b) the number worked out using the formula:
Sum of index numbers for quarters in most recent December year
Sum of index numbers for quarters in earlier December year
In subsection (4):
for a quarter, means the All Groups Consumer Price Index number for the quarter (being the weighted average of the 8 capital cities) first published by the Australian Statistician for the quarter.
If the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published for that quarter, disregard the later publication.Changed index reference period 135C(7)
However, if the Australian Statistician changes the index reference period for the Consumer Price Index, take into account only the index numbers published in terms of the new index reference period.
Round the subsection (3) result down to the nearest whole dollar (if the result is not already a number of whole dollars).
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.