March 30—A number of rulings for the 2016-17 fringe benefit tax (FBT) year commencing April 1 were released by the Australian Tax Office in three separate March 30 Tax Determinations.
The fringe benefits tax is a tax employers pay on certain benefits they provide to employees. The benefit may be in addition to, or part of, salary or wage packages. The FBT year runs from April 1 to March 31.
The rulings include: reasonable amounts of food and drink expenses incurred by employees receiving a living-away-from-home allowance, the benchmark interest rate used to calculate the taxable value of a car fringe benefit and the indexation factors for valuing non-remote housing.
The amounts considered reasonable for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit include rates for various family sizes living away from home both within Australia and overseas. Under the new rates, the weekly amount determined to be reasonable for food and drink expenses by one adult within Australia is A$242 ($185).
The benchmark interest rate for the FBT year will remain the same as 2015 at 5.65 percent. The rate is used to calculate the taxable value of a fringe benefit provided by way of a loan as well as a car fringe benefit where an employer chooses to value the benefit using the operating cost method.
The indexation factors for the purpose of valuing non-remote housing vary by state. For the 2016-17 FBT year, the rates range from 0.978 for the Australian Capital Territory to 1.025 in New South Wales.
To contact the editor responsible for this story: Michael Baer at firstname.lastname@example.org
The indexation factors for valuing non-remote housing can be found at http://law.ato.gov.au/atolaw/view.htm?docid=%22TXD%2FTD20161%2FNAT%2FATO%2F00001%22.
The food and drink expense allowances can be found at http://law.ato.gov.au/atolaw/view.htm?docid=%22TXD%2FTD20164%2FNAT%2FATO%2F00001%22.
The benchmark interest rate can be found at http://law.ato.gov.au/atolaw/view.htm?docid=%22TXD%2FTD20165%2FNAT%2FATO%2F00001%22
More information on payroll issues in Australia can be found in the Australia country primer.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)