|
[Print-friendly version]
Contact Officer | Director, Corporate Finance, Finance and Resource Planning |
Approval Date | 19/06/2008 |
Approval Authority | Executive Director, Finance and Resource Planning |
Date of Next Review | 01/06/2011 |
7.2.1 Description
7.2.2 Types of fringe benefits
7.2.3 Rate of tax
7.2.4 The Fringe Benefits Taxable Amount
7.2.5 Reportable fringe benefits
Modification History
7.2.1 Description
Fringe Benefits Tax (FBT) is a tax paid by the University on fringe benefits provided in respect of
employment. This can include fringe benefits for former or future employees and benefits paid for by
a third party. The tax will be charged back to the responsibility centre responsible for incurring
the expenditure.
With careful planning there are a number of ways that the University's FBT expenditure can be reduced.
Advice should be sought from the Financial Services Department when considering the payment of what
may be classified as a fringe benefit.
Top
7.2.2 Types of fringe benefits
There are 13 categories of fringe benefits including some of the following examples:
-
Car Fringe Benefit occurs when a car is made available for the private use of an employee. A car
is taken to be made available for private use by an employee on any day the car is available for
private use and not on University premises, the car is used for private purposes or garaged at the
employees' home.
-
Tax-exempt Body Entertainment Fringe Benefit includes the provision of entertainment by way of
food, drink, or accommodation or travel in connection with the provision of such entertainment when
the benefit is provided by an entity exempt from income tax.
-
Property Fringe Benefit arises when the employer provides an employee with free or discounted property.
-
Expense Payment Fringe Benefit can arise when the employer reimburses an employee for expenses
the employee incurs or when the employer pays a third party in satisfaction of expenses incurred
by the employee.
-
Living Away From Home Allowance Fringe Benefit is an allowance paid to an employee to compensate
for additional expenses incurred and any disadvantages suffered because the employee has to live
away from home to perform employment-related duties.
-
Residual Fringe Benefit is any benefit provided that is not subject to any of the other rules.
Examples include private travel, health insurance or the use of property.
Top
7.2.3 Rate of tax
The FBT rate is 46.5%.
Top
7.2.4 The Fringe Benefits Taxable Amount
To calculate the FBT payable a gross-up formula is applied depending on the type of expenditure incurred.
Higher Gross-up Formula (Type 1)
The higher gross up formula is used when QUT is entitled to an input tax credit for GST paid on benefits provided to an employee.
The higher FBT gross-up formula results in a gross up rate of 2.0647 where the FBT rate is 46.5% and the GST rate is 10%.
Lower Gross-up Formula (Type 2)
All remaining Fringe Benefits are Type 2 benefits.
The Type 2 FBT gross-up formula results in a gross-up rate of 1.8692 where the FBT rate is 46.5%.
Top
7.2.5 Reportable fringe benefits
If an employee receives certain fringe benefits with a total taxable value of more than $2,000 in
an FBT year (1 April to 31 March) QUT must report the grossed-up taxable value of the benefits on the
employee's payment summary for the corresponding income year.
Top
Modification History
|
Date |
Sections |
Source |
Details |
19.06.08 |
All |
Acting Executive Director, Finance and Resource Planning |
Revised policy |
|
06.09.05 |
All |
Executive Director, Finance and Resource Planning |
New policy |
Top
|
