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Reporting Fringe Benefits Tax Exemption

From the financial year ending 2016/17, the ATO has made changes to the reporting requirements for company’s and employees who receive fringe benefits.

  • Types of organisations that are FBT exempt, that is, exempt from paying FBT, include public benevolent institutions, health promotion charities, public and not-for-profit hospitals and public ambulance services. 
  • Further information on these types of organisations and capping thresholds available on the ATO website: https://www.ato.gov.au/general/fringe-benefits-tax-(fbt)/

A new option has been added to the Company Details configuration under Taxation | Tax Configuration to allow for setting the company as FBT Exempt.  When selecting this option, the Employee is automatically set to FBT Exempt also within the Employee file under Payments | ATO Summaries.  Please continue to enter any reportable Fringe Benefits amounts in the relevant field in the employee file.

In the instance that an organisation has an employee who has worked two roles, where one is FBT exempt and the other role not, a second employee file will need to be created to accommodate the non-exempt role (untick the FBTExempt box within the employee file) and required second ATO Payment Summary.  This second employee file would contain no payslip data, simply the manually entered reportable Fringe Benefit value and unticked FBTExempt setting.   

Note: If an employer provides multiple fringe benefit amounts to the same payee in the same fringe benefit period and at least on amount complies with section 57A of the Fringe Benefits Tax Assessment Act 1986 and at least one other amount does not comply, then two separate payment summaries are required. 

 

Further information on reportable Fringe benefits available on the ATO website: https://www.ato.gov.au/general/fringe-benefits-tax-(fbt)/

Company Details | Taxation | Tax Configuration

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Employee | Payments | ATO Summaries

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Note: If there is no reportable fringe benefits amount entered under Payments | ATO Summaries – Fringe Benefits and regardless of the FBT Exempt indicator, then the No and Yes boxes for the Is the employer exempt from FBTunder section 57A of the FBYAA 1986? on the ATO Payment Summary and the Y or N indicator on the electronic (empdupe) file will be left blank.

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