Attributed fringe benefits are benefits that can be clearly linked to the individual employees who receive them, rather than pooled or shared among multiple employees (non-attributed).
You must attribute fringe benefits to individual employees when both of the following apply.
- You’re using the full or pooled alternate rate calculation options.
- The benefit is over the annual threshold for the benefit type.
When you provide a fringe benefit to an associated person of an employee, attribute the benefit to the employee.
Thresholds for attributing fringe benefits
Annual taxable value thresholds apply to some types of fringe benefits.
The thresholds determine whether a benefit must be attributed to an individual employee. When benefits are below the annual threshold, they can be pooled and taxed together.
You can choose to attribute benefits when the total value of the benefit type for an employee is below the threshold. If you choose to attribute benefits for 1 employee, you must attribute all benefits for that benefit type to all employees receiving them.
Motor vehicles and low-interest loans
No annual threshold applies to motor vehicle and low-interest loan fringe benefits.
Motor vehicle benefits are attributed to the employee when the vehicle is available for their private use. Vehicles made available to more than 1 employee, where you cannot determine the main employee receiving the benefit, can be pooled.
Low-interest loans must be attributed to the employee receiving the benefit. The exception is for loans to life insurance policy holders by life insurers – these can be pooled.
Other benefits - annual thresholds
Annual thresholds apply to the following types of benefits. When the benefits are less than the annual threshold, you can pool the benefits.
| Benefit type | Annual threshold |
|---|---|
| Subsidised transport* | $1,000 |
| Contributions to sickness, accident or death funds | $1,000 |
| Contributions to funeral trusts | $1,000 |
| Contributions to insurance funds of a friendly society or a specified insurance premium for life, accident or medical policies* | $1,000 |
| Contributions to superannuation schemes where ESCT or PAYE does not apply | $1,000 |
| Unclassified benefits and gift cards | $2,000 |
* You can pool subsidised transport and specified insurance premiums fringe benefits that are over the annual threshold if all employees have the same or similar entitlement.
Rates for pooled fringe benefits
Certain benefits do not have to be attributed to the employees receiving them. If you cannot determine the employee who mainly uses or receives the benefit, you can pool it.
| Pool | FBT rate for pool |
|---|---|
| Major shareholder-employees | 63.93% |
| All other employees | 49.25% |
If you have different employee types, you must use 2 pools with different rates.
If you’re still providing benefits to employees who no longer work for you, these are pooled.
If a major shareholder is 1 of the recipients of non-attributed benefits that cannot be assigned, all benefits of that type are taxed at 63.93%.
More information
See 'Part 1 - Attributed fringe benefits' in our Fringe benefit tax guide - IR409.