Unit 3: Fringe benefits tax (FBT) and employment remuneration
- Overview
- When does FBT apply
Benefits outside the scope of FBT and dealt with under the income tax law
-Salary or wages
-Benefits under employee share schemes
-Employer-provided complying superannuation fund contributions
-Employment termination payments (e.g. a lump sum paid on retirement) and payments for unused leave
-Benefits that are deemed dividends under the ITAA 1936, including Division 7A ITAA 1936
-Payments of a capital nature for a legally enforceable contract for restraint of trade, or for personal injury to a person- Major category of the fringe benefit
- Debt waiver and loan FBT
- Expense Fringe Benefit
- Living-away-from home allowance [LAFHA]
- Car parking fringe benefits
- Property fringe benefits
– In house property fringe benefits
– Otherwise deductible, e.g. bookstore’s book discount to its own staff
– $1,000 concession- Residual fringe benefits
- Meal entertainment fringe benefits
50/50 method
12-week register method
Where the employer chooses not to apply Division 9A
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