Advice about the current rate of tax is provided to employers by the Australian Taxation Office Tax Office each year. The taxable value of a benefit is calculated according to the valuation rules. Eg if an employee paid the rent out of their take-home pay or the employee paid the rent for them and the employer then paid the FBT.
There are many questions that arise from this, so please get your own advice and if you want to learn more consider our FBT and Salary Packaging course. As a general rule, the cost incurred in providing a fringe benefit is an allowable income tax deduction and. An employee contribution is assessable income of the employer however, it is not an allowable deduction for the employee. A fringe benefit is exempt income in the hands of the recipient. If you are looking to re-skill or up-skill but unsure of which course best suits you, get in touch with one of our consultants today and we will endeavor to help you.
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For your annual calculation, add the NSW portion of the total type 1 and type 2 aggregate amounts, multiplied by the type 2 gross-up rate for the specific year.
The formula is total NSW wages excluding fringe benefits divided by total Australian wages excluding fringe benefits multiplied by the taxable value from your FBT return for the year ending 31 March immediately before the current financial year divided by The formula is total NSW wages excluding fringe benefits divided by total Australian wages excluding fringe benefits multiplied by the taxable value from your FBT return for the year ending 31 March immediately before the annual reconciliation.
Use payroll tax assist to help you meet your payroll tax obligations. It'll show you what wages are taxable. Skip to content Skip to navigation. Taxes, duties, levies and royalties.
About How to meet your obligations and make payments. Land tax Paying tax on property you own. Payroll tax Calculate and lodge tax on the wages paid by your business. Transfer duty Calculate and pay transfer stamp duty on purchases. For this reason, FBT marginal rates are the gross-up of the income tax marginal rates. Under the new income tax and FBT rates from 1 April , in order to keep things equal, the example above will change to look like this:.
In order to be able to perform your attribution calculation in the final quarter of next year, you need to ensure you have the right data available from 1 April This includes knowing which employees have received which benefits, and the respective benefit values. This may be something you can do already, but if not, you need to think now about the changes you need to make to your FBT data collection methods to ensure you are collecting this level of detail from 1 April When the new rates apply, it is likely that performing an attribution calculation will result in FBT savings that outweigh the compliance costs of doing so.
You also need to plan now, to ensure you collect the right data from 1 April Software is available to help with the attribution calculation. Deloitte is also able to perform these calculations for you, providing the right data is available.
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