Employer election regarding taxable value of fringe benefits
16 Employer election regarding taxable value of fringe benefits
An employer who has paid or is liable to pay fringe benefits tax imposed by the FBTA Act in respect of a period of not less than
15 months before 30 June in any year may elect to include as the value of the fringe benefits paid or payable by the employer during the month concerned:
in a return lodged in relation to each of the first 11 months occurring after 30 June in that year – 1/12th of the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding the commencement of the current financial year; and
in the return lodged in relation to the 12th month – the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding that month, less the total of the amounts of fringe benefits included in the returns for each of the preceding 11 months.
The amount determined in accordance with this subsection is to be determined in accordance with the formula:
where:
AFBA is the aggregate fringe benefits amount within the meaning of section 136 of the FBTA Act.
FBT rate is the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises.
An election under subsection (1) takes effect when it is notified to the Commissioner in the form approved by the
Commissioner.
After an employer has made an election under subsection (1), the employer must lodge returns containing amounts calculated in accordance with the election unless the Commissioner approves, by notice in writing given to the employer, the termination of the election and allows the employer to include the value mentioned in section 15(2)(a).
If an employer ceases to be liable to pay payroll tax, the value of taxable wages comprising fringe benefits to be included in the employer's final return is (irrespective of whether or not the employer has made an election under subsection (1)) the value of the fringe benefits paid or payable by the employer for the period commencing on and including the preceding 1 July until the date on which the employer ceases to be liable to payroll tax, less the value of the fringe benefits paid or payable by the employer during that period on which payroll tax has been paid.
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