If you're a shareholder-employee, and you and any associated persons hold voting interests of 50% or more in the company, the value of any attributable fringe benefits received and the fringe benefit tax paid by the company is treated as income for Working for Families and student loans.
For Working for Families purposes, if both you and your spouse or partner hold interests totalling 50% or more, you both need to calculate and tell us your income.
What attributable fringe benefits are
Attributable fringe benefits are:
- motor vehicles for private use
- low/nil-interest employee loans
- subsidised transport (when the employer is in the business of transporting the public) of more than $1,000
- contributions to insurance schemes of more than $1,000
- contributions to sickness, accident or death funds of more than $1,000
- any other benefits received of more than $2,000.
If you receive fringe benefits but you are not a shareholder-employee of the company you work for, then you do not need to include the value of the fringe benefits in your income.
Jack and Diane are married and receive Working for Families for their three children. Together they have a 100% voting interest in a a plumbing company and are both employed by the business.
They each receive a salary of $35,000. The company provides each of them with a work vehicle which they can also use for private use. The value of the private use of the vehicle plus the fringe benefit tax payable by the company is $8,000 for Jack and $6,000 for Diane for the tax year.
Jack has a student loan. He will need to include $8,000 for the calculation of Working for Families and his student loan.
Diane will need to include $6,000 as income for the calculation of their Working for Families entitlement.