Return calculation details – items 14 to 23

14 Calculated fringe benefits taxable amounts

Before you can calculate the taxable value of any benefit, you must identify the category the benefit falls into.

GST affects how you work out your FBT liability.

About aggregate amounts

Type 1 aggregate amount

A type 1 aggregate applies if you (or a member of the same GST group) are entitled to a GST credit for goods or services you acquired in providing fringe benefits. To work out this amount:

• start with an employee’s individual fringe benefits amount
• calculate the type 1 aggregate amount using the formula below.

The rate you use for your calculations is higher than the rate for calculating a type 2 aggregate because it recovers the GST credit you are entitled to.

Type 2 aggregate amount

Type 2 fringe benefits are those that you (or a member of the same GST group) cannot claim GST credits, for either of the following reasons:

• you (or they) are not entitled to – for example, you are not registered for GST
• there are no GST credits available because the benefit is either of the following:
  • GST-free, such as school fees
  • input taxed, such as housing other than commercial accommodation.
   

To work out this amount:

• start with an employee’s individual fringe benefits amount
• calculate the type 2 aggregate amount using the formula below.

The rate you use for your calculations is lower than the rate for calculating a type 1 aggregate because you are not entitled to a GST credit.

For example, you reimburse an employee $700 for their child’s school fees. School fees are GST-free – as a result, you can’t claim a GST credit. This is a type 2 fringe benefit that you calculate at the lower rate.

Aggregate non-exempt amount (hospitals, ambulances, public benevolent institutions and health promotion charities only)

You must complete only item 14C (and not items 14A and 14B) if you are a:

• public benevolent institution
• health promotion charity
• public hospital
• non-profit hospital
• public ambulance service.

14A Type 1 aggregate amount

To calculate your type 1 aggregate amount:

• work out each employee’s individual fringe benefits amount for fringe benefits that are GST-creditable – that is, where you or a member of the same GST group were entitled to a GST credit
• add them together
• add any excluded fringe benefits that are GST-creditable to the total amount.

The formula you use to calculate this amount is:

Type 1 aggregate fringe benefits tax amount

x

FBT rate + GST rate ______________________________________________ (1 – FBT rate) x (1 + GST rate) x FBT rate

The higher FBT ‘gross-up’ formula for the type 1 aggregate fringe benefits amount results in a gross-up rate of 2.0647 where the FBT rate is 46.5% and the GST rate is 10%.

Grossing up means increasing the taxable value of benefits you provide to reflect the gross salary employees would have to earn at the highest marginal tax rate (including Medicare levy) to buy the benefits after paying tax.

14B Type 2 aggregate amount

To calculate your type 2 aggregate amount:

• work out each employee’s individual fringe benefits amount for those benefits that are not GST-creditable benefits – that is, where the provider or a member of the same GST group did not pay GST, or a GST credit was not allowed when the benefits were acquired
• add them together
• add any excluded fringe benefits that are not GST-creditable benefits to the total amount.

The formula you use to calculate this amount is:

Type 2 aggregate fringe benefits tax amount

x

1 _______________________ (1 - FBT rate)

The formula for the type 2 aggregate fringe benefits amount results in a gross-up rate of 1.8692 where the FBT rate is 46.5%.

14C Aggregate non-exempt amount (hospitals, ambulances, public benevolent institutions and health promotion charities only)

This applies to you only if you are a:

• public benevolent institution
• health promotion charity
• public hospital
• non-profit hospital
• public ambulance service.

Refer to the section Non-profit organisations.

Other employers, including rebatable employers, must leave item 14C blank.

You would show the figures from the two examples above at item 14 as:

15 Fringe benefits taxable amount

Add the amounts at items 14A and 14B and place the total at item 15, even if the amount is nil.

You must complete this item because it (and item 16) forms the basis of self assessing any FBT liability.

16 Amount of tax payable

This is 46.5% of the amount you wrote at item 15 (the FBT rate multiplied by the fringe benefits taxable amount).

Show the amount of tax payable at item 16, even if the amount is nil.

You must complete this item because it (and item 15) forms the basis of self assessing any FBT liability.

17 Aggregate non-rebatable amount

This item applies to you only if you are a rebatable employer – a certain kind of non-government, non-profit organisation eligible for a rebate of 48% of the amount of FBT payable. Rebatable employers that are charities must be registered with the ACNC from 3 December 2012 and endorsed by us to access the rebate.

If you are not a rebatable employer, leave this item blank and go to item 19.

18 Amount of rebate

This item applies to you only if you are a rebatable employer. Rebatable employers that are charities must be registered with the ACNC from 3 December 2012 and endorsed by us to access the rebate.

If you are not a rebatable employer, leave this item blank.

The amount you write at this item is 48% of the difference between items 16 and 17.

19 Sub-total

Subtract the amount at item 18 (if any) from item 16 and show the total amount at item 19.

If you are not a rebatable employer, this amount is the same as the amount you wrote at item 16.

Make sure you provide the sub-total at item 19 and not at items 17 or 18.

20 Less instalment amounts reported on activity statements

Add together the FBT instalment amounts you reported on your four activity statements for the 2013 FBT year, and show the total amount at item 20. We will credit this amount against your 2013 FBT liability. Do not include any amount you paid for:

• penalties
• any other year’s liability.

If you pay your FBT by instalments, you must lodge all of your activity statements for the FBT year ending 31 March 2013, including the March 2013 quarter, before lodging your FBT return – we can then update your FBT account. If all activity statements are not lodged before lodging your FBT return, your return will not be actioned until all instalments are paid.

If you do not pay your FBT by instalments, leave this item blank.

21 Payment due

If the amount at item 20 is:

• more than the amount at item 19, go to item 22
• less than the amount at item 19, show at item 21 the exact difference between the amounts.

The amount at item 21 is the difference between the following:

• the amount you have paid throughout 2013
• the amount you must pay by 21 May 2013 (unless you have made other arrangements with us).

You may round down this amount to the nearest multiple of five cents.

22 Credit due to you

If the amount at item 20 is more than the amount at item 19, show at item 22 the exact difference between the amounts. We will credit this amount to you. However, if you owe us money for other taxes, we may reduce the amount of the credit you show at item 22.

23 Details of fringe benefits provided

There are specific valuation rules for each category of fringe benefit. You must identify the category of the benefit provided and do the appropriate calculations for that category before you can:

• work out the taxable value of any benefit
• complete the details in the 'Taxable value of benefits' column.

Do not include the gross-up calculation in the amounts you show at this item.

Number

Show the number of cars, loans or houses (or other units of accommodation) you use to provide car, loan or housing fringe benefits at items:

A	Cars using the statutory formula
B	Cars using the operating cost method
C	Loans granted
F	Housing – units of accommodation provided

For item G, show the number of employees who received a living-away-from-home allowance.

Gross taxable value (a)

This is the sum of the taxable values of fringe benefits for that particular benefit category before any reductions (for example, employee contributions).

If there are no employee contributions or reductions, include this figure also in the 'Taxable value of benefits (a) – (b) – (c)' column.

Employee contribution (b)

This is the total of employee contributions made for that benefit category.

If you reduce the taxable value of a benefit by the amount of an employee contribution, the employee must make the contribution before you lodge your return. Special arrangements apply where the contribution is made by a journal entry in your accounts.

You cannot use any excess employee contribution for one benefit to offset the taxable value of other benefits you provided to that employee or other employees.

Excess contribution can either be refunded to the employee or deferred to the following FBT year against the same fringe benefit.

Employee contributions you receive:

• are generally assessable for income tax purposes
• must be included in your income tax return.

If you lodge a company, trust or partnership return, you must also show the amount of employee contributions you received on that return.

We treat employee contributions (other than a contribution of services as an employee) as consideration for a taxable supply for GST purposes – accordingly, you must pay GST on the supply. The GST-inclusive employee contribution reduces the taxable value of the fringe benefit.

GST does not form part of an employee’s contribution where the:

• benefit is either GST-free or input taxed
• GST was paid to a third party – for example, for fuel
• benefit provider is not registered or required to be registered for GST
• benefit is not a taxable supply.

Value of reductions (c)

This is the total amount where benefits of that category have been reduced:

• under the ‘otherwise deductible’ rule
• by other means – for example, in relation to in-house fringe benefits.

The ‘otherwise deductible’ rule only applies if both of the following apply:

• the recipients of the benefits are current employees
• you obtain from them any necessary supporting documents, such as
  • declarations
  • receipts
  • invoices.
   

You should obtain these before you lodge your return – however, you may lodge your return before obtaining the receipts or invoices if you have good reason to expect them within a reasonable time.

Taxable value of benefits (a) – (b) – (c)

This is the sum of the taxable values of fringe benefits of that particular benefit category, after taking into account any employee contributions and/or other reductions for each fringe benefit.

If the employee contributions or reductions are greater than the benefit you provided, show zero on the FBT return, not a negative amount.

When completing this column, make sure you also complete the 'Gross taxable value (a)' column – refer to the section Fringe benefit categories.