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Fringe benefit tax (FBT)
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Calculating fringe benefit tax

You have certain choices among three methods (single rate (formerly flat rate), alternate rate (formerly multi-rate) or short form alternate rate option) and the rates of fringe benefit tax.

Alternate rate calculation process

The alternate rate calculation process allows an employee's fringe benefits to be taxed at their marginal tax rate. This process ensures that fringe benefits of employees earning less than $70,000 are not over-taxed as they may be under the single rate option.

Short form alternate rate (formerly multi-rate) calculations

Learn here the use of the short form alternate rate calculation option for FBT if you are an employer. You may use the short form alternate rate calculations for FBT returns for 2002 and future years.

Single rate

You can choose to pay fringe benefit tax at a single rate of 49.25% on all benefits you provide to employees, including shareholder-employees. Learn about the use of the single rate option to calculate FBT.

FBT rates

You have choices regarding the rate of fringe benefit tax you use, depending on which type of return you file. You should also be aware of the rates required for major shareholder-employees. Learn the different options for FBT rates (full alternate rate, short form alternate rate) for employers and if they apply to you.

FBT for shareholder-employees and employees receiving attributed income

Learn how to calculate FBT payable for shareholder-employees and employees receiving attributed income using the single rate or the alternate rate also if it applies to you as an employer.

Correct an error in your FBT return

If you realise you’ve made a minor error or errors in a FBT return you’ve filed, you may be able to correct it.

 

 


Date published: 30 Sep 2010

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