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FBT ‘ FBT Rates commencing 1 April 2017

This article identifies recent ATO statements on various FBT rates that will apply from 1 April 2017.

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The Commissioner has published various FBT rates/amounts that will apply for the fringe benefit tax year commencing 1 April 2017. These are identified below:

1.            Exemption Threshold – s. 135C

TD 2017/2 updates the exemption threshold for the new FBT year:

‘The exemption threshold for the fringe benefits tax (FBT) year commencing 1 April 2017 is $8,393. This replaces the amount of $8,286 that applied in the previous year commencing 1 April 2016.’

2.            FBT benchmark interest rate

TD 2017/3 updates the benchmark interest rate for the new FBT year:

‘ … The benchmark interest rate for the fringe benefits tax (FBT) year commencing on 1 April 2017 is 5.25 per cent per annum. This rate replaces the rate of 5.65 per cent that had applied for the previous FBT year commencing on 1 April 2016.

… The rate of 5.25 per cent is used to calculate the taxable value of:

  • a fringe benefit provided by way of a loan, and
  • a car fringe benefit where an employer chooses to value the benefit using the operating cost method. …’

3.            Rates for private use of vehicle

TD 2017/4 sets out the rates to be applied where the cents per kilometre basis is used for the fringe benefits tax (FBT) year commencing on 1 April 2017.

4.            Reasonable amounts for food and drink expenses by employees in receipt of living-away-from-home-allowances – FBT year commencing 1 April 2017

TD 2017/5 sets out ‘amounts which the Commissioner considers reasonable under s. 31G FBTAA for food and drink expenses incurred by employees receiving a living-away-from-home-allowance (LAFHA) fringe benefit for the fringe benefits tax year … commencing on 1 April 2017’.

It also notes:

‘Where the total of food and drink expenses for an employee (including eligible family members) does not exceed the amount the Commissioner considers reasonable, those expenses do not have to be substantiated under section 31G of the FBTAA. Where an employee receives a LAFHA fringe benefit, for the employer to reduce the taxable value of the fringe benefit by the exempt food component, the expenses must be either:

  • equal to or less than the amount the Commissioner considers reasonable under paragraph 31G(1)(b), or
  • substantiated in accordance with the requirements in subsection 31G(2).’

5.            Indexation Factors for purposes of valuing non-remote housing fringe benefits

TD 2017/6 sets out the indexation factors for the purpose of valuing non-remote housing for the FBT year commencing 1 April 2017.

Disclaimer: Information provided in this article, while correct at time of publishing, is subject to change.