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Fringe Benefits Tax by Mind Map: Fringe Benefits Tax
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Fringe Benefits Tax

1. Is there a fringe benefit

s136(1) - any right, privilege, service or facility that is provided. (Very broad definition).

s23L(1) fringe benefits are not assessable non-exempt income

s23L(1A) Income that constitutes exempt fringe benefits is exempt income.

2. Is the benefit a 'fringe benefit" (ie. in respect of employment)?

s136(1)

3. Determine the category of the fringe benefit

Div 2 - Car benefits

Div 3 - Debt waiver fringe benefits

Div 4 - Loan fringe benefits

Div 5 - Expense payment fringe benefits

Div 6 - Housing fringe benefit

Div 7 - Living-away-from home allowance fringe benefit

Div 8 - Airline transport fringe benefit

Div 9 - Board fringe benefit

Div 9A - Meal entertainment

Div 10 - Tax-exempt body entertainment fringe benefit

Div 10A - Car parking fringe benefits

Div 11 - Property fringe benefits

Div 12 - Residual fringe benefits

4. Does it fall within any of the exemptions/exclusions for this category or for benefits generally?

s136(1) Specific exclusions - 'fringe benefit' definition

Specific exclusions - taxing provision (ss 8, 17, 21, 22, 41, 47).

Div 13 & 14 'specific exemptions'

5. Determine taxable value of benefit taking into account reductions.

Step 1: Calculate the taxable value of each benefit provided

Step 2: allocate taxable values to categories of benefits.

Step 3: Gross up taxable value

Step 4: Add these 2 amounts together and multiply the sum by the FBT rate of 46.5%

6. Any reportable fringe benefits?

136(1) where total taxable value of employee's fringe benefits grossed up using the type 2 rate exceeds $2,000 they have reportable fringe benefits.