Fringe benefit tax (FBT): Calculating fringe benefit tax
FBT rates
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From 1 October 2010 personal tax rates have changed, so the higher FBT rate of 61% has reduced to 49.25%. If you are calculating your FBT requirements for prior to 1 October 2010, you will need to use the previous rates. The following information is using the rates from 1 April 2010 to 31 March 2011. Find out about the new annual rates that apply from 1 April 2010 . |
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Rates when filing quarterly FBT returns
- For 2011 - in quarters 1 and 2 you must choose whether to pay fringe benefit tax at the 61% single rate or 49% alternate rate. In quarter 3 you must choose whether to pay fringe benefit tax at the 49.25% single rate or 43% alternate rate.
- If you choose the alternate rate option in any one of quarters 1 to 3, you must complete either the full alternate rate calculation process or the short form alternate rate calculation option in the final quarter.
- If you choose to pay fringe benefit tax using the single rate option in the first three quarters, you can either complete the alternate rate calculation in the final quarter, or pay fringe benefit tax at the single rate (49.25%).
Decide which rate to choose based on your own situation.
Rates when filing yearly FBT returns
For 2010-11 - If you complete an annual or income year return, you can choose to either:
- pay fringe benefit tax at 55.04% of the taxable value of the benefits provided, or
- complete the full alternate rate calculation process or the short form alternate rate calculation option.
Note: rates for major shareholder-employees
For a major shareholder-employee, or an associated person of the major shareholder-employee (where the fringe benefit is not received as an employee), the single rate option of 55.04% applies to non-attributed fringe benefits that they receive.
However, where it is possible to individually assign non-attributed benefits to individuals you can create two categories:
- For 2010-11 - one category for benefits for which a major shareholder-employee or an associate is not one of the recipients. Here the single rate option of 45.99% applies.
- For 2010-11 - another category for benefits for which a major shareholder-employee or an associate is one of the recipients. Here the single rate option of 55.04% applies.
Date published: 29 Sep 2010
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