Description
The 2006-2007 Federal Budget reduced the rate of Fringe Benefits Tax (FBT) from 48.5% to 46.5%, effective from 1 April 2006.
Detailed Outline
The 2006-2007 Federal Budget reduced the rate of Fringe Benefits Tax (FBT) from 48.5% to 46.5%, effective from 1 April 2006.
The SES Guidelines provide that where applicable, the cost of FBT must be included in the remuneration cost of benefits provided as part of an SES officer's Total Remuneration Package (TRP).
For the purposes of charging the officer's TRP, FBT should now be calculated as 46.5% of the value of the benefit grossed up by 1.8691* (i.e. benefit x 1.8691 x 0.465). The FBT year is from April 1 to March 31.
Below is an example of how to calculate the FBT for an SES/Senior Officer salary packaged motor vehicle using the statutory formula method in accordance with the SES Guidelines. Note that the following calculations apply to both StateFleet and novated lease packaged vehicles.
Capital cost of the car (GST inclusive) - $35,000.00
Estimated annual km - 25,000 km
Statutory fraction will be - 0.11 (as per Circular No. 95-10)
New FBT = Capital cost x statutory fraction x gross up value x FBT rate
= $35,000.00 x 0.11 x 1.8691 x 0.465
= $3,346.16
The SES Guidelines will be amended to reflect this change.
*Gross up value is 1/1 - FBT rate = 1/1 - 0.465 = 1.8691
C Gellatly
Director-General
Issued : Workforce Capability (Public Employment Office)
File no: PSM/00094
Date: 1 June 2006
Overview
Compliance
- Not Mandatory
AR Details
- Date Issued
- Jun 1, 2006
- Review Date
- Dec 31, 2014
- Replaces
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- Replaced By
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Contacts
- Contact
- Contact us
- Phone
- 02 9228 5555
- Publishing Entity
- Department of Premier and Cabinet
- Issuing Entity
- Department of Premier and Cabinet