Fringe benefit tax (FBT): Fringe benefit tax overview
Non-attributed benefits
| Note | |
|---|---|
| From 1 April 2009 personal tax rates have changed, so the higher FBT rate of 64% has reduced to 61%. 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. From 1 April 2010 these rates will once again drop from 61% down to 59%. Find out more on tax rate changes. | |
Non-attributed benefits are pooled or shared fringe benefits that are not attributed to an individual employee. For example, a non-attributed benefit is a motor vehicle of which no one employee has principal use.
Note: In the final quarter, quarterly filers must check their non-attributed benefits to ensure that the annual taxable value of the employee's benefits in a particular category is less than the thresholds under attributed fringe benefits.
Generally, the FBT rate is 49% for non-attributed benefits. The exception is where one or more of the recipients is a major shareholder-employee or an associated person of a major shareholder-employee.
Non-attributed benefits received by a major shareholder-employee or an associated person
If one of the recipients of the non-attributed benefit is a major shareholder-employee or an associated person of a major shareholder-employer (where the fringe benefit is not received as an employee), the FBT rate of 61% applies.
Example
Four employees had the private use of a car during the quarter (where the employer, Jane Bloggs Limited, is filing a quarterly FBT return).
- two of these employees had the car for 27 days each.
- two of these employees had the car for 16 days each.
As no one employee had the principal use of the fringe benefit, Jane Bloggs Limited treats it as a shared vehicle.
However, if one of the four employees had greater use of the car, the company would attribute the whole benefit to that employee.
Date published: 24 Mar 2009
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