Fringe benefit Tax 2015/16

Fringe benefit Tax 2015/16 from Kasker Associates, Gordon Taxation & Business Solutions

By: Kasker Associates, Gordon Taxation & Business Solutions  29-Jul-2015
Keywords: Accountant, Tax Accounting, Taxation Services

Fringe Benefits Tax The ATO recently issued a variety of pieces of guidance relevant to the 2015-16 FBT year that commenced on 1 April 2015. 1) FBT exemption threshold The ATO has issued Taxation Determination TD 2015/5 entitled “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 2015?” An employer may be exempt from keeping most records for a particular FBT year if, after establishing a ‘base year’, the amount of fringe benefits in that ‘base year’ do not exceed the exemption threshold. The exemption threshold for the FBT year commencing 1 April 2015 is $8,164. This replaces the amount of $7,965 that applied in the previous year commencing 1 April 2014. Your tax agent will be able to assist you to determine if you can apply this exemption in the current FBT year. 2) FBT: Benchmark interest rate The ATO has issued Taxation Determination TD 2015/8 entitled “Fringe benefits tax: what is the benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2015?” The benchmark interest rate for the FBT year commencing on 1 April 2015 is 5.65% per annum. This rate replaces the rate of 5.95% that has applied for the previous FBT year commencing on 1 April 2014. The rate is used to calculate the taxable value of a fringe benefit provided by way of a loan and a car fringe benefit where an employer chooses to value the benefit using the operating cost method. 3) FBT: Reasonable food and drink expenses The ATO has issued Taxation Determination TD 2015/7 entitled “Fringe benefits tax: reasonable amounts under section 31G of the Fringe Benefits Tax Assessment Act 1986 for food and drink expenses incurred by employees receiving a living away from home allowance fringe benefit for the fringe benefits tax year commencing on 1 April 2015”. 4) FBT: Cents per km rates for private use of motor vehicle The ATO has issued Taxation Determination TD 2015/6 entitled “Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing on 1 April 2015?” The rates to be applied where the cents per kilometre basis is used for the FBT year commencing on 1 April 2015 are: Engine capacity - Rate per kilometre 0 - 2500cc - 51 cents Over 2500cc - 61 cents Motorcycles - 15 cents 5) Car parking threshold The ATO has released the car parking threshold for the fringe benefits tax year commencing on 1 April 2015. The threshold is $8.37. This replaces the amount of $8.26 that applied in the previous year commencing 1 April 2014: TD 2015/11 “Fringe benefits tax: for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986 what is the car parking threshold for the fringe benefits tax year commencing on 1 April 2015?" (13 May 2015). Other Important information – due date for FBT returns and payments. If you lodge your FBT return through your tax agent, it is due on 25 June. However, payment was due on 28 May. If you lodge it yourself, it was already due on 21 May.

Keywords: Accountant, Accounting & Bookkeeping, Accounting & Tax Services, Bookkeeping Services, Business Accountants, Business Bookkeeping, Business Planning, Income Tax Returns, Registered Tax Agent, Tax Accountants, Tax Accounting, Tax Advice, Tax Consultants, Tax Preparation, Tax Return Accountant, Tax Services, Taxation Services

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