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Fringe benefit tax (FBT)
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Fringe benefit tax (FBT): Fringe benefit tax overview

Attributed benefits

Categories and thresholds of attributed benefits

Attributed benefits are:

  • motor vehicles, other than pooled vehicles
  • low-interest loans, other than those provided by life insurance companies
  • subsidised transport if you are an employer in the public transport business and the taxable value of this benefit is $1,000 or more per employee (you have the option of treating this benefit as non-attributed if all employees have the same or a similar entitlement to that benefit)
  • employer contributions to an insurance scheme, namely any life insurance, pension insurance or personal accident or sickness insurance policy or insurance fund of a friendly society, if the annual taxable value of all contributions is $1,000 or more per employee
  • employer contributions to any superannuation scheme where employer superannuation contribution tax (ESCT), formerly specified superannuation contribution withholding tax (SSCWT), does not apply if the annual taxable value of all contributions is $1,000 or more per employee
  • employer contributions to a sick, accident or death fund, if the annual taxable value of all contributions is $1,000 or more per employee
  • benefits of any other kind (for example, gifts, prizes, subsidised or discounted goods and services) if the annual taxable value of all these benefits is $2,000 or more per employee.

Rules and thresholds for attributed benefits

Benefit category Threshold Attributed Non-attributed (pooled)
Motor vehicles None Attribute If no employee has the principal use, enjoyment or availability of the benefit, treat it as a non-attributed benefit
Low-interest loans None Attribute, except if it is a low-interest loan by a life insurer Loans by life insurers to insurance policyholders are pooled fringe benefits and treated as a non-attributed benefit
Subsidised transport (for employers in the public transport business only) $1,000 Attribute any benefit when the annual taxable value is $1,000 or more per employee except if all employees have the same or a similar entitlement to the benefit Treat as non-attributed if the annual taxable value is less than $1,000 per employee, or if all employees have the same or a similar entitlement to the benefit*
Employer contributions to sick, accident or death fund $1,000 Attribute if the annual taxable value is $1,000 or more per employee Treat as non-attributed if the annual taxable value is less than $1,000 per employee*
Employer contributions to specified insurance funds of friendly societies $1,000 Attribute if the annual taxable value is $1,000 or more per employee Treat as non-attributed if the annual taxable value is less than 1,000 per employee*
Employer contributions to any superannuation scheme where employer superannuation contribution tax (ESCT) does not apply $1,000 Attribute if the annual taxable value is $1,000 or more per employee Treat as non-attributed if the annual taxable value is less than 1,000 per employee*
Any other benefit of any kind (for example, gifts, prizes, discounted goods and services) $2,000 Attribute if the annual taxable value (the total value of all benefit types in this category) is $2,000 or more per employee Treat as non-attributed if the annual taxable value (the total value of all benefit types in this category) is less than 2,000 per employee*

* Note: Employers can choose to attribute all benefits within a category regardless of the category thresholds.

Choosing to attribute a fringe benefit below the threshold

When the total value of a benefit within one of the above categories is below the threshold, you may choose to attribute it. However, if you choose to do so for one employee, you must attribute all benefits in that category to all employees receiving them.

Example

David, an employer, contributes to an accident fund of his three employees, as follows:

$1,500 to Anna
$   600 to Brian
$   950 to Cindy

Although his contribution to Anna's accident fund is the only contribution that exceeds the $1,000 threshold, David has chosen to attribute all three fringe benefits.

On the other hand, David provides benefits under the category "any other benefit of any kind" as follows:

$2,500 to Anna
$   150 to Brian
$   120 to Cindy

Again, for Anna the fringe benefits in this category exceed the threshold, so David must attribute them. However, he chooses not to attribute the benefits of Brian and Cindy (note that if he wished to attribute the benefits of one of these employees, he would have to attribute them for both).

 

 


Date published: 27 Jun 2008

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