ATO reminder about RFB
Written on the 21 March 2014 by Macmillans Waller Fry - Accountants in Maitland
Employers are reminded that the ATO will be focusing on businesses not complying with the Fringe benefits tax (FBT) system in 2013-14.
The ATO will be paying particular attention to those employers who are failing to fulfil their FBT obligations, including disclosing the reportable fringe benefits (RFB) amount.
If the value of certain fringe benefits provided exceeds $2000 in an FBT year (which is 1st April to 31st March) employers need to record the gross taxable value of the benefits on the employee’s payment summary for the corresponding income year (which is the 1st July to 30th June).
Generally, if there is an RFBA, there will be an FBT liability. However, this does not occur where benefits are exempt from FBT because an employee works in or for a public benevolent institution,health promotion charity, hospital, public ambulance service or is a live- in residential care worker.
If employees do not correctly report their RFB amounts in their income tax returns it may affect their government benefits and obligations.
Author: Macmillans Waller Fry - Accountants in Maitland