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ATO: Fringe Benefit’s Tax Rates 2024-2025

A fringe benefit is a ‘payment’ to an employee, but in a different form to salary or wages. According to the FBT legislation, a fringe benefit is a benefit provided in respect of employment. This effectively means a benefit is provided to somebody because they are an employee.

These rates and thresholds apply for the FBT year starting from 1 April 2024 to 30 March 2025.

  • FBT Rate: 47% 
  • Instalments Threshold: Quarterly instalments are required if last year’s FBT liability was $3,000 or more. 
  • Higher Gross-Up Rate: 2.0802 (when GST credit is allowed for the benefit provided). 
  • Lower Gross-Up Rate: 1.8868 (when GST credit is not allowed for the benefit). 
  • Reportable Fringe Benefits Thresholds
  • Taxable value must exceed $2,000. 
  • Minimum grossed-up value is $3,773. 

Here are some examples of FBT expenses: 

  • Car expenses: This includes costs like registration and insurance. 
  • Car parking: Applicable if the employer does not provide the parking facilities. 
  • Home mortgage: Reimbursements or payments towards an employee’s home mortgage. 
  • Home/desktop computer: Costs related to acquiring computers for home use. 
  • Home telephone and internet: Payments for an employee’s home telecommunication services. 
  • Employee personal credit card payments: Reimbursements for expenses charged to an employee’s personal credit card. 
  • Health insurance premiums: Payments towards an employee’s health insurance. 
  • Self-education expenses: Costs associated with an employee’s education that is relevant to their job.

If you are wanting further information about Fringe Benefit’s Tax Rates 2024-2025, you can contact us here.

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