Fringe benefit tax (FBT): Calculating fringe benefit tax
Single rate
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| From 1 April 2009 personal tax rates have changed, so the higher FBT rate of 64% has reduced to 61% and the rate of 63.93% has reduced to 61.29%. The following information is using the rates from 1 April 2009 onwards. If you are calculating your FBT requirements for prior to 1 April 2009, you will need to use the previous rates. Find out more on tax rate changes. |
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You can choose to pay fringe benefit tax at the single rate option (formerly flat rate) of 61% on all benefits you provide to employees, including shareholder-employees.
However, if an employee who receives a fringe benefit earns under $70,000, the 61% FBT rate effectively over-taxes their fringe benefits. To deal with this situation, we also have an alternate rate (formerly multi-rate) calculation process for fringe benefit tax.
Quarterly returns
If you file quarterly returns and have chosen to pay the single rate option of 61% in the first three quarters you can:
- pay 61% in the fourth quarter
- use the alternate rate calculation in the fourth quarter.
Date published: 17 Jun 2009
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