Taxation Determination

TD 2005/11

Fringe benefits tax: For the purposes of section 135C of the Fringe Benefits Tax Assessment Act 1986, what is the exemption threshold for the fringe benefits tax year commencing on 1 April 2005?

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FOI status:

Preamble

1. The exemption threshold for the fringe benefits tax (FBT) year commencing 1 April 2005 is $6,223. This replaces the amount of $6,084 that applied in the previous year.

2. Two conditions must be satisfied for the record keeping exemption arrangements to apply to an employer for an FBT year:

(i)

a base year needs to be established; and

(ii)

during the FBT year immediately before the current year the employer has not received a notice from the Commissioner requiring the employer to resume record keeping.

3. Section 135C sets out a number of conditions that must be met before an FBT year is a base year of an employer. One of the conditions is that the employer's aggregate fringe benefits amount in the base year does not exceed the exemption threshold.

4. The exemption threshold set in this Determination has been ascertained by applying an indexation factor of 1.023 (reflecting the movement in the All Groups Consumer Price Index for the eight capital cities for the year ending 31 December 2004) to the previous year's threshold.

Date of effect

5. This Determination applies to the FBT year commencing 1 April 2005.

Commissioner of Taxation
30 March 2005

Not previously issued as a draft

References

ATO references:
NO 2004/6082

Related Rulings/Determinations:

TD 1999/44
TD 2000/22
TD 2001/6
TD 2002/8
TD 2003/7
TD 2004/11

Subject References:
base year
exemption threshold
FBT
fringe benefits tax
record keeping exemption arrangements
record keeping requirements
RKEA

Legislative References:
TAA 1953 Pt IVAAA
FBTAA 1986 135C