The 2018 Fringe Benefits Tax (FBT) year runs from 1 April 2017 and ends on 31 March2018 (“the 2018 FBT year”).
The FBT rate has been reduced from 49% for the 2017 FBT year to 47% for the 2018 FBT year. This reduction is in line with the Government’s cessation of the 2% Temporary Budget Repair Levy (TBRL) from 1 July 2017.
As an employer, you should consider all benefits provided to employees/associates (you as the owner may also be an employee) during the Fringe Benefit Tax (FBT) year the 2018 FBT year. These benefits should be carefully documented as you may unknowingly be subject to FBT.
With the change in FBT rates it is important to continually review your salary sacrifice arrangements with employees to ensure no-one is disadvantaged due to the changes in the rates.
The Table below highlights the changes to the FBT rates that have taken effect since the introduction of the TBRL of 2% from 1 July 2014.