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

Non-attributed benefits

Note  

From 1 October 2010 personal tax rates have changed, so the higher FBT rate of 61% has reduced to 49.25%. The following information is using the rates from 1 October 2010 onwards. If you're calculating your FBT requirements for periods prior to 1 October 2010, you'll need to use the previous rates. 

If you're calculating your FBT requirements for 2011 annual, income year or alternate rate calculations for the March quarter, use the 2011 annual rates.

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 42.86% 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 49.25% 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: 29 Sep 2010

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