Completing your 2017 FBT return – all employers

Business details – items 1 to 13

Taxation law authorises the ATO to collect information and to disclose it to other government agencies. For more information see privacy.

1 Tax file number (TFN)

• Print your TFN in the boxes provided.
• Make sure your TFN matches your FBT registration, particularly if you operate through a trust.
• If you do not have a TFN, complete a Tax file number application for companies and other organisations.
• If you are a sole trader and do not have a TFN, complete a Tax file number – application or enquiry for individuals.

2 Australian business number (ABN)

Your ABN is a unique 11-digit number issued to your business because you have registered in the Australian Business Register (ABR). It helps identify you for tax purposes.

• If you are registered in the ABR, print your ABN in the box provided.
• Make sure the ABN you provide is associated with the TFN you quoted at item 1.

3 Name of trustee or senior partner

If you are a trust or partnership, provide the name of your trustee or senior partner – otherwise, leave this item blank.

If the name of your trustee or senior partner has not changed, provide the details exactly as shown on the last FBT return you lodged. If the name of your trustee or senior partner has changed, provide the new details.

4 Name of employer

Provide your name. Only complete the individual or non-individual part, as applicable. If your name has not changed, provide the details exactly as shown on the last FBT return you lodged. If your name has changed, provide the new details.

5 – 7 Previous and current name and postal addresses

Follow the instructions on the FBT return 2017 for the following items:

• previous name
• current postal address
• postal address on previous return
• current business/trading name.

8 Previous name of trustee or senior partner

If you are a trust or partnership and your details have changed, provide the previous name of the trustee or senior partner of your organisation exactly as shown on the last FBT return you lodged – otherwise, leave this item blank.

9 Name of the person to contact

Provide the name, daytime phone number, and email address of a person we can contact, if necessary, about the information in your return.

10 Number of employees receiving fringe benefits during the period 1 April 2016 to 31 March 2017

Write the total number of your employees and their associates who received fringe benefits during the period 1 April 2016 to 31 March 2017. The total must include any current, former or future employees, or their associates, who received fringe benefits during the FBT year.

11 Hours taken to prepare and complete this form

We are committed to reducing your costs in meeting your tax obligations. Your response to this question is voluntary, but your answers will help us monitor these costs. When completing this question, consider the time (rounded up to the nearest hour) you spent:

• reading the instructions
• collecting the information necessary to complete this return
• making any necessary calculations
• completing this return and putting your business tax affairs in order so you could give the information to your tax agent.

Do not include the time your tax agent took to prepare and complete this return.

12 Do you expect to lodge FBT return forms for future years?

Tell us if you plan to continue lodging FBT returns. If you have provided taxable fringe benefits after 31 March 2017, they fall into the 2018 FBT year and you may need to lodge a 2018 FBT return.

We will cancel your FBT registration and any future instalments if you answer ‘no’ to this question.

If you don't complete this item, it may result in processing problems.

13 Electronic funds transfer (EFT)

Direct refund

We need your financial institution details to pay any refund owing to you, even if you have provided them to us before. Complete the following:

• Bank state branch (BSB) number. This six-digit number identifies the financial institution (do not include spaces or hyphens).
• Account number. This should not have more than nine characters (do not include spaces).
• Account name. In most cases, your account name should be shown on your bank account records. It should include spaces between each word and between initials. If your account name exceeds 32 characters, provide the first 32 characters only.

Return calculation details – item 14

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.

We describe each category in Fringe benefits tax – a guide for employers.

GST affects how you work out your FBT liability.

Tax is payable on the fringe benefits taxable amount. To work out the fringe benefits taxable amount you must determine your type 1 and type 2 aggregate fringe benefits amounts.

About aggregate amounts    

Type 1 aggregate amount

The type 1 aggregate amount is the total of all Type 1 fringe benefits. These are benefits where you (or a member of the same GST group) are entitled to a GST credit for GST paid on the benefits provided to an employee.

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

Goods and Services Taxation Ruling GSTR 2001/3 Goods and Services Tax: GST and how it applies to supplies of fringe benefits explains which benefits you are entitled to a credit for.

Type 2 aggregate amount

The type 2 aggregate amount is the total of all type 2 fringe benefits. These are benefits that you (or a member of the same GST group) cannot claim GST credits for because:

• 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 (for example, school fees)
  • input taxed (for example, residential accommodation).
   

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

FBT concessions for certain employers

Concessional FBT treatment is available for certain benefits provided by the following types of employers:

• a rebatable employer
• an eligible public benevolent institution or health promotion charity
• a public hospital, non-profit hospital (a hospital carried on by a society or association that is a rebatable employer) or public ambulance service
• a not-for-profit organisation operating partly as an eligible public benevolent institution employer.

These types of employers may be exempt from FBT up to a capping threshold or entitled to a rebate subject to a capping threshold.

See also:

• Non-profit organisations and FBT

If you are covered under one of the above category types for the year ending 31 March 2017, see the specific instructions relevant to you to help you complete your FBT return 2017.

If you are not covered under one of the above category types for the year ending on 31 March 2017, see Taxable employers for instructions to help you complete your FBT return 2017.

Completing your FBT return 2017 calculation details – taxable employers

Return calculation details – items 14A to 23

14A Type 1 aggregate amount

To calculate your type 1 aggregate amount:

• Step1: Work out the total taxable value of all the fringe benefits you provide for which you can claim a GST credit.

If not already included, add any excluded fringe benefits that are GST creditable to the total amount. Excluded benefits are those benefits that you provide that are not included on your employees' payment summaries.

• Step 2: Multiply the result from step 1 by the higher gross-up rate of 2.1463.

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:

• Step 1: Work out total taxable value of all those benefits for which you can't claim a GST credit.  
  • If not already included, add any excluded fringe benefits for which you can't claim a GST credit.
   
• Step 2: Multiply the result from step 1 by the lower gross-up rate of 1.9608.

14C Aggregate non-exempt amount

You must leave item 14C blank as this item only applies to public and non-profit hospitals, public ambulance services, and eligible public benevolent institutions and health promotion charities. These employers should refer to Completing your FBT return 2017 - not-for-profit employers.

15 Fringe benefits taxable amount

Add the amounts at items 14A and 14B and write 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

Multiply the amount you wrote at item 15 by 49% (the FBT rate for the year ending 31 March 2017) and write the total 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

As you are not a rebatable employer, you must leave item 17 blank.

Rebatable employers should refer to Completing your FBT return 2017 - not-for-profit employers.

18 Amount of rebate

As you are not a rebatable employer, you must leave item 18 blank.

Rebatable employers should refer to Completing your FBT return 2017 - not-for-profit employers.

19 Sub-total

As you are not a rebatable employer, write the amount you wrote at item 16.

Rebatable employers should refer to Completing your FBT return 2017 - not-for-profit employers.

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 2017 FBT year, and show the total amount at item 20. We will credit this amount against your 2017 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 2017, including the March 2017 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, write 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 2017
• the amount you must pay by 22 May 2017 (unless you have made other arrangements with us).

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

See also:

• How to pay

22 Credit due to you

If the amount at item 20 is more than the amount at item 19, write at item 22 the 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

The rules for calculating the taxable value of a fringe benefit vary according to the type of benefits provided.

You must identify the type of benefits provided before you

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

We describe each type of benefit in Fringe benefits tax – a guide for employers.

Do not include any aggregate amounts at this item.

Number

Write 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

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

Gross taxable value (a)

Write in this column 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)

An employee contribution is a payment you receive from your employee to reduce the cost of the fringe benefit you provide.

For example, employee contributions include amounts an employee pays to you for using a car and/or for car operating costs such as fuel.

Employee contributions you receive are generally assessable for income tax purposes and 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. If you are an income tax exempt employer you do not need to lodge an income tax return just because you receive employee contributions.

Write in this column the sum of all employee contributions made for that particular benefit category.

If you write an amount in this column, the employee must make the contribution before you lodge this return.

Special arrangements apply where the contribution is made by a journal entry in your accounts. For more information on contributions by journal entry, see Miscellaneous Taxation Ruling MT 2050 Fringe benefits tax: payment of recipients contribution by journal entry.

Excess employee contributions

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

Any excess contribution can either be refunded to the employee or dealt with as agreed between the employer and employee including being deferred to the following FBT year against the same fringe benefit.

Employee contributions and GST

Employee contributions (other than a contribution of services as an employee) are consideration for a taxable supply and 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.

For more information on how GST applies to employee contributions, see Goods and Services Taxation Ruling GSTR 2001/3 Goods and Services Tax: GST and how it applies to supplies of fringe benefits.

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 employees prior to the day your FBT return 2017 is due or by 21 May 2017 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 – see Fringe benefit categories.

Declarations – items 24 and 25

24 Registered tax agent’s declaration

Registered tax agents are required to sign the declaration at item 24.

25 Employer’s declaration

You must complete this item if you lodge your FBT return 2017 on your own behalf.

Public officer or authorised officer declaration

The public officer is responsible for doing all things required by the company. In the case of default, the public officer is liable to the same penalties.

A public officer or authorised officer must sign and date for companies.

Partnership

For a partnership, one of the partners must sign and date the declaration.

Trust

For a trust, the trustee or public officer must sign and date the declaration.

Government bodies

For government bodies, the delegated officer must sign and date the declaration.