Fringe benefit tax (FBT): Calculating fringe benefit tax
Short form alternate rate (formerly multi-rate) calculations
| Note | |
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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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Complete this calculation in your annual or income year return. Or, if you file on a quarterly basis, in the fourth or final quarter return (quarters 1 to 3 should be calculated using the single rate option (formerly flat rate) of either 61% or 49%).
Classification required
Under this option you must still classify benefits as either:
- attributed - all of these benefits are subject to the single rate of 61.29%, or
- non-attributed - all of these benefits are subject to the single rate of 49% (or 61% if provided to major shareholder-employees).
Where non-attributed benefits are provided to shareholder-employees, two pools for non-attributed benefits may be necessary. This option may appeal to employers providing attributed and non-attributable benefits mainly to employees who earn more than $70,000 gross equivalent income.
Information required
To undertake the short form alternate rate calculation process, complete the FBT alternate rate calculation sheet - quarterly returns (IR417) as follows:
- in column 1 on separate lines enter attributed benefits and non-attributed benefits
- in column 9 enter the total amount of benefits that were attributed or non-attributed
- in column 10 enter the rate that you are using to calculate FBT payable
- in column 11 multiply column 9 by column 10 and enter the total.
Complete boxes A, B and C where C is the amount of fringe benefit tax to pay. Transfer this amount to your return.
Example
Acme Industries elects to calculate FBT using the short form alternate rate option in 2009-2010. The company undertakes the following calculations.
| Total attributed benefits | $8,295 (FBT rate 61.29%) |
| Total non-attributed benefits | $850 (FBT rate 49%) |
| FBT assessed in quarters 1 to 3 | $3,637.27 |
None of the attributed benefits were provided to major shareholder-employees.
| FBT on attributed and non-attributed benefits | $5,500.51 |
| Less FBT assessed on quarters 1 to 3 | $3,637.27 |
| FBT payable in final quarter | $1, 863.24 |
Date published: 17 Jun 2009
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